BPI to build jetty near Batang power plant

PT Bhimasena Power Indonesia (BPI) will develop a jetty as a temporary port for the unloading and loading of construction equipment and coal for the planned 2x1,000 MW coal-fired power plant in Batang, Central Java, reports said on Friday.

BPI President Director Mohammad Effendi was quoted as saying that the jetty will be located near the Batang power plant to help ensure efficient coal supply.

He said that the company, which since the start has decided not to use the local Batang port, has obtained approval from the Central Java administration and state-owned power company PT PLN for the planned jetty.

BPI is a consortium comprising of Japan?s J-Power, Itochu Corp, and PT Adaro Power, which is owned by IDX-listed coal giant PT Adaro Energy Tbk. The consortium won tender for the giant US$4 billion power plant project in 2011, but the project has suffered lengthy delays due to difficulties in completing land acquisition, which was only finally completed late last year with the help of PLN.

The consortium has recently signed amendment of the power purchase agreement with PLN. Financial closure is now expected to be made on June 6, which will pave the way for the consortium to start construction of the project in the hope it could be completed in 2019. (*)