Bakrie, Korea East-West to jointly bid Bontang power plant

PT Bakrie Power has partnered with Korea East-West Power Co Ltd in its bid to win the tender to build a steam-fired power plant in Bontang, East Kalimantan which will generate 2 x 100MW. The project is estimated to cost between US$300 and $350 million.

"Together with Korea East-West Power, we will jointly bid for the Bontang power plant project," Bakrie Power president director Ali Herman Ibrahim said on the sidelines of a meeting between state power company PLN and Korean representatives on Monday.

Ibrahim said Bakrie would control 65 percent of the interest. "The investment will come from the two companies. We?ll raise funds, so will they," he said.

He expects the plant will be operated in 2013, with demand for coal estimated at 1 million tons per year.

Meanwhile, Korea East West Power Deputy General Manager for Overseas Business Division Min Tae Bang confirmed the cooperation with Bakrie.

"Last month we submitted prequalification documents. If we can win the tender, it will be our first project in Indonesia ," he said.

This year, Korea East will buy 15 million tons of coal from Indonesia to fulfill the need of its coal-fired power plants in the Philippines, India and also in South Korea , he said.

Korea East will also seek coal mine in Indonesia to secure coal supply for its power plants. ?We are still scouting the mines in Indonesia,? he said without giving further details. (godang)