Bakrie to team up with Samsung in Tanjung Jati A power project
Monday, April 4 2011 - 02:03 AM WIB
Bobby Gafur Umar said that Bakrie has signed memorandum of agreement (MoA) in February 2011. He said that the firm is expected to start construction next year and the power plant will start commercial operation date (COD) in 2016.
The project costs are estimated at around US$2 billion, he added.
When state owned electricity firm PT Perusahaan Listrik Negara (PLN) signed the agreement to buy power from Tanjung Jati A in April 1997, the official record issued by PLN stated that the project was owned by Bakrie Power Corporation (20 percent), Tomen Power Corporation (30 percent), UK-based firm International Power (30 percent) and PT Maharani Paramitra (20 percent). Maharani is owned by former President Soeharto?s daughter Titiek Prabowo.
The Tanjung Jati A had been delayed several years because PLN had not yet agreed with the prices of the electricity proposed by Bakrie.
Bakrie proposed a price range of between 6 US cents and 7 US cents per kWh for the electricity to be produced from the Tanjung Jati A plant, but the proposal was rejected by PLN. ?The negotiation is still underway to settle the difference,? he said in April last year.
A difficulty in obtaining lands in Jepara for the power plant had also hampered the development of the project, Ali said on April 29 last year, adding that the company could relocate the plant site to Pemalang, also in Central Java, if the land appropriation problem could not be settled.
In August 2010, the firm said that its consortium members International Power plc and Tomen Corp. canceled their participation in the project. ?Although Bakrie has not received officially the cancellation latter yet, but they already told Bakrie about their plan,? Bakrie Power?s President Director Ali Herman Ibrahim told reporters in Jakarta Aug. 23, 2010. (*)