Tanjung Jati B sold to Sumitomo

Tanjung Jati B sold to Sumitomo

HONG KONG: Hopewell Holdings Ltd. said on Friday it sold its
stalled Indonesian power project to Japan's Sumitomo Corp. for
US$306.2 million.

Hopewell, a Hong Kong-based infrastructure company, owns 80
percent of the 1,200-Megawatt Tanjung Jati B project in Java, and
Indonesia's PT Impa Energi owns the rest.

Hopewell will receive about $215 million of the sale price, PT
Impa Energi will get about $53 million, and $38 million will be
used to pay outstanding contractors' bills for the project.

Hopewell will apply its share of the sale proceeds to general
working capital but "will consider seeking other investment
opportunities," the company said in a legal notice.

The Tanjung Jati project began in 1997 with Hopewell as
developer and Sumitomo as constructor, according to Global Power
report.

Hopewell made a HK$4.82 billion provision in 1998 for
investments in the Tanjung Jati B Power Station after the Asian
financial crisis forced Indonesia to pull the plug on the
project.

The company's Friday statement said Hopewell has no intention
to participate in Indonesian power projects after the Tanjung
Jati sale. -- Dow Jones