BTN Power, CMEC teams up for $1.1b power project in South Sulawesi
Tuesday, June 3 2014 - 01:59 PM WIB
Both will team up with local company Bantaeng Sigma Energi (BSE) in the project, BTN Power said in a statement obtained on Tuesday.
The MoU for the project was signed on May 30, 2014 at the Sahid Hotel in Jakarta by BTN Power President Director Nasaruddin Muhammad, Vice General of CMEC Cao Yuejum and President Director of Bantaeng Sigma Energi Irzan Yuswar. Also present were the representatives of Perusda Bantaeng (local government owned firm) which will be involved in the project.
Irzan said the project which requires an estimated US$1.1 billion investment is expected to come onstream in 2017. The main offtaker of the power is the eight smelters that will be built inside the industrial complex.
?Power may account for up to 70 percent of production costs of a smelter,? he said.
Under the MoU, BTN Power will be responsible for collecting financing for the project, while CEMC will provide the technology and Bantaeng Sigma Energi will be responsible for community relations and land acquisition.
Irzan said the power plant will reach its break even point (BEP) within seven years of operation.
According to him, BIP is the only industrial park for smelters planned in Indonesia. The industrial park occupies 3,000 ha of lands, while the power plant will be built on a 50-ha of land
Irwan of Perusda Bantaeng said thus far, eight companies have signed agreements with the Bantaeng regency to build smelters at BIP. The smelters will be built in tandem with the power plant project, he said, while promising that land acquisitions will be completed in June this year.
Aside from PLTU Bantaeng, BTN Power is also teaming up with CMEC to develop a 3x150 MW power plant project in the Dumai Industrial Park in Riau with a total investment of $165 million.
Editing by Johannes Simbolon