Banjarsari mine-mouth power plant to start construction

State-owned coal miner PT Tambang Batubara Bukit Asam (PTBA) said the construction of its 2x100 MW Banjarsari mine-mouth power plant in South Sumatra would start in the second quarter of this year.

PTBA is finalizing an amendment to the power purchase agreement (PPA) with state electricity firm PT Perusahaan Listrk Negara (PLN), the company said. PTBA has got approval from the ministry of energy and mineral resources for the revision of PPA on February 23, 2011.

The project is expected to be completed within 33 months, it said.

In July last year, PLN?s president director Dahlan Iskan said the renegotiation on price with the PTBA-led consortium had concluded. The new price will be more than 5 U.S. cents per Kwh, he said. Under the previous agreement, electricity from the power plant will be sold to PLN at 3.78 cents per kwh.

PTBA has a 41 percent stake in the consortium called PT. Bukit Pembangkit Innovative (BPI), with PT Navigat Innovative Indonesia and PT Perusahaan Listrik Negara's (PLN) subsidiary PT. Pembangkit Jawa-Bali owning 39 percent and 20 percent respectively.

PTBA will supply 1.15 million tons per annum of coal to the power plant.

BPI has secured Rp 2 trillion from Bank Mandiri and Bank Ekspor Indonesia and has appointed Chinese firm Jiannxi Electric Power Overseas Engineering as contractor to build the power plant and PT. Cita Contract as transmission developer. (denny)