Bakrie sees Tanjung Jati A power plant to start operations in 2014

Bakrie Power, a unit of IDX-listed investment firm Bakrie & Brothers said Monday that it and partners would start construction of Tanjung Jati A 2x660-MW coal-fired power plant late 2009 with completion seen in 2014, or two years later than earlier planned.

CEO Ali Herman Ibrahim said that the consortium, which members include Bakrie Power, International Power plc, Tomen Corp and Maharani Group, is currently in talks with state electricity firm PLN over electricity price which would be generated from the proposed Independent Power Producer (IPP).

Ibrahim said the consortium had opened EPC tender for the project and contractors from Japan and China had submitted biddings.

Coal supply from the power plant would come from Bakrie-controlled mine PT.Arutmin Indonesia with the volume of 6 million tonnes per annum, he said.

He also added that Bakrie Power is seeking to increase stake in the project from 20 percent currently. He did not give detail.

In 2007, Bakrie& Brothers Director Ambono Januarianto told reporters that price range for the Power Purchasing Agreement (PPA) for Tanjung Jati A had narrowed to between US 4.4-4.5 cents per kwh. (godang)