Bangalore-based GMR Group today signed an agreement with the international power producer InterGen NV (InterGen) to acquire Intergen’s 100-per-cent ownership stake in Island Power – a Singapore based private electric utility. Island Power is currently developing an 800 MW combined-cycle power facility, fired by natural gas, to be located on Jurong Island, Singapore, the company said in a media statement.
While the GMR Group had gained an indirect interest in Island Power through its 50 per cent acquisition of InterGen in June 2008, the Group has now made a strategic decision to take this a step further by acquiring full and direct ownership of the Singapore energy development project.
Ng Quek Peng, Head of South East Asia - GMR Group, said, “We are delighted to have reached an agreement with InterGen. Island Power will be GMR’s first and flagship project in Singapore and the South East Asia region, and we will be focussing our efforts on making this a success.”
The project will bring over approximately $1.5 billion (Rs 7200 crore) in foreign direct investment (FDI) into Singapore.
Commenting on the Group’s interest in the South East Asian market, Ng Quek Peng said: “This clearly demonstrates our firm commitment to be a long-term investor and operator in South East Asia. We are very serious about entering the energy market here and are optimistic about Island Power’s long-term prospects. We believe that the energy demand in Singapore and the wider region will see growth in the long run, especially as the global economy recovers.”
Construction of the power plant is slated to begin by the fourth quarter of 2010, with the facility expected to be completed and operationalised by 2013.
Ranjit Murugason, CEO of GMR International said: “We are confident that with the Group’s considerable resources and sector experience, GMR will be able to develop Island Power, Singapore’s first independent power project, into a successful, leading power producer. This is yet another step towards making GMR a truly global player in the infrastructure sector, having launched our international business in 2008 with the acquisition of a 50% stake in InterGen.
