Astra to build two power plants

Through its subsidiary PT Astratel Nusantara, PT Astra International (ASII) will expand into power business in cooperation with the company?s business partners, The Jakarta Post reported on Thursday.

At the moment, Astratel was expecting to complete agreements on joint ventures with European companies to bid for power plant projects, Astra International chief group treasury and investor relations officer Iwan Hadiantoro said on Wednesday.

?We are looking at a hydropower plant project in Sulawesi and a coal-fired power plant project in Kalimantan. Each of the power plants will have a capacity of 150 megawatts,? Iwan said.

?The hydropower plant project will cost roughly US$250 million while the coal-fired power plant will need around $200 million;? he added.

Astratel and its partners would build and operate the power plants as independent power producer (IPP), which will sell the electricity to state owned electricity company PLN. But he refused to identify the company?s partner in the electricity business.

As a 100 percent owned subsidiary Astratel is currently Astra?s arm on infrastructure and its related business. Earlier in January, Astratel along with fellow subsidiary PT Intertel Nusaperdana acquired a 100 percent stake in PT Pelabuhan Penajam Banua Taka, which runs a port operation business in East Kalimantan. Astratel also operates in toll roads. (*)