KUALA LUMPUR (Dec 23): Shares of YTL Power International Bhd rose 2.76% in early trade this morning after the company yesterday signed a 30-year power purchase agreement (PPA) with PT PLN (Persero) worth US$2.7 billion (RM11.61 billion), marking the group's second investment in Indonesia.

At 9.15am, YTL Power rose 4 sen to RM1.49 with 1.03 million shares traded.

In a statement yesterday, YTL Power said its 80%-owned subsidiary, PT Tanjung Jati Power Co Ltd, has inked the PPA to restate and amend the original PPA that was entered into on April 2, 1997.

Under the agreement, YTL Power is tasked to construct two units of 660-megawatt (MW) coal-fired power generating facility. Correspondingly, it will sell the energy and capacity from the facility to PLN.

The project is expected to contribute positively to YTL Power’s future earnings.

According to YTL Power, the project known as Tanjung Jati 'A' Coal Fired Independent Power project will be located at Cirebon, West Java, Indonesia, which will expire in 2051.

YTL Power managing director Tan Sri Dr Francis Yeoh said in the statement the project will utilise state-of-the-art coal-fired technology and will be among the most efficient of the new generation of plants in the Indonesian system.

YTL Power made its first Indonesian venture in 2004, after purchasing a stake in the 1,220MW Jawa Power project through its wholly-owned subsidiary PT YTL Jawa Timur.

YTL Power owns 57.14% shares of YTL Jawa Power Holdings BV, which in turn owns 35% of the Jawa Power project.