Indonesian, Chinese firms to build 1,240MW South Sumatra power plant

Indonesia's PTBA and China Huadian Corporation plan to set up a joint venture company to build and operate a a 2x620 megawatt coal-fired power plant in South Sumatra.

PTBA, a coal miner, will control a 45 percent stake in the partnership, with its Chinese partner controlling the remaining 55 percent.

Milawarma, president director of PTBA, said that the deal should be in place this month.

PTBA is seeking a bank loan from a Chinese lender to help finance the estimated cost of the project, which is $1.5 billion.

Milawarma said that 75 percent of the capital will come from a bank loan and the remainder from internal funds of the stakeholders.

“We are expecting a loan commitment from China Development Bank for this,” Milawarma said.

He expects construction of the power plant to start by 2013.

Bukit Asam and China Huadian won the power plant project from Perusahaan Listrik Negara last December.

PTBA will supply 100 percent of the power plant’s need for coal, which is about 5 million metric tons per year. The entire power supply generated by the plant will be used by PLN.

For more.

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