Adaro pulls out from C. Kalimantan coal railway project

Indonesia-listed energy firm PT Adaro Energy Tbk has finally decided to withdraw from a US$2.2 billion railway project to transport coal in Central Kalimantan, Kontan reported Monday.

Andre J. Mamuaya, one of the company?s directors, said in Jakarta last week that the withdrawal decision was made because of the uncertainty related to the future of the coal railway which would be built under a public private partnership (PPP) program.

?We pulled out from the project because there is no certainty about it,? he said.

The company earlier said it would take part in the tender for the 185-kilometer railway project to be developed by Central Kalimantan and Central Government under the PPP program. The project will be the first of the four railway projects to connect coal mines and ports in the province.

Andre also said that the company would go ahead with its plan to take part in the development of the 2x100 MW South Kalimantan coal-fired power plant despite state electricity company PLN?s recent decision to retender the project.

He said that PLN would again call bids for the project because because of the lack of participants in the first tender's prequalifications. Andre, however, said that Adaro would no longer team up with Mitsui of Japan in bidding for the power plant which would have a capacity of 2 x 100 megawatt.

?We will find other partner in the project. We will, however, remain a minority shareholder,? he said. (*)