Adaro seeks to build 5,000 MW power plants
Tuesday, February 23 2016 - 01:31 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk is seeking to develop a total of 5,000 MW coal-fired power plants until 2019 as part of diversification strategy, according to a company senior official.
Adaro Deputy CEO Dharma Djojonegoro said on Monday that total investment is projected at around US$8 billion.
Adaro is currently in the process to develop a 2x1,000 MW coal-fired power plant in Batang, Central Java, with total investment estimate of $4 billion, and a 2x100 MW coal-fired power plant in South Kalimantan, with estimated investment of about $500 million.
Dharma said that financial closing for the two projects is expected to be made in June of this year. The bulk of the funding is expected to come from banks in Japan and Singapore.
?Adaro?s target is to have 5,000 MW for five years, we now already have 2,200 MW,? Dharma said.
The power plant projects are part of Adaro?s diversification strategy to reduce dependency on coal mining, which has been under pressure due to lingering drop in the price of the commodity. Adaro expects the power business, run by subsidiary PT Adaro Power, to contribute about a third of the company?s total income.
The aggressive drive in the power plant business comes as the government is pushing for the development of a combined 35,000 MW power plants until 2019. Adaro seeks to grab 5,000 MW of this target.
Editing by Reiner Simanjuntak