The infrastructure arm of Keppel and Keppel Infrastructure Trust (KIT), through its trustee-manager, Keppel Infrastructure Fund Management (KIFM), have proposed to enter into an agreement to amend and extend the capacity tolling agreement (CTA) for the Keppel Merlimau Cogen (KMC) Plant by 10 years, from 2030 to 2040.
The KMC Plant is a combined-cycle gas turbine power plant with a generation capacity of approximately 1,300 megawatts, situated on Jurong Island, Singapore. KIT owns a 51 percent stake in KMC, with the other 49 percent held by Keppel.
The CTA, if amended and extended, is expected to generate up to $1,080 million in long-term capacity payments for KMC. This will provide a stable base of contracted cash flows to underpin a refinancing of KMC’s existing loan facility, which will unlock value for both shareholders with the resumption of the asset’s contributions to Keppel and KIT. In addition, the operations and maintenance (O&M) contract between KMC a
