Bakrie Sumatra to build power plant next year

PT Bakrie Sumatra Plantations (UNSP), a subsidiary of PT Bakrie and Brothers, plans to build a power plant with a capacity of 15.5 megawatt in the company?s oleochemical plant in Sumatra, next year, Kontan reported Friday.

Bobby Gafur S. Umar, the president director of Bakrie Brothers, said in Jakarta on Thursday that the new power plant would replace the diesel power plant which was currently operated to support the operation of UNSP?s chemical plant.

Gafur said an investor from China had expressed interest to take part in the construction of the power plant. He said that the construction of the power plant which would cost about between US$20 million and $25 million was expected to begin in February, next year.

?It will be possible if an investor builds the power plant, and then we buy the electricity from them,? said UNSP?s finance director Harry M. Nadir.

He said that UNSP later decided not to involve an independent power producer (IPP) to build the power plant, the company had to use its own funds or to raise loans from bank to finance the power plant project. (*)