Bukit Asam expects PLTU Tanjung Enim to begin operating in 2016

By Hiski Darmayana

Coal producer PT Bukit Asam Tbk (PTBA) is targeting the coal mine mouth power plant (PLTU) Tanjung Enim in South Sumatera to begin commercial operation in 2016. The company is currently seeking to ink power purchase agreement (PPA) with state electricity firm PT Perusahaan Listrik Negara (PLN) as buyer.

?There are a number of pending issues that are yet to be agreed under the PPA. We hope the agreement can be signed by PLN (and PTBA) in second semester this year,? said President Director of PTBA Milawarma in Jakarta.

The PPA was originally planned to be signed in second quarter this year. The PLTU Tanjung Enim will have a capacity of 2x620 MW.

Milawarma said the construction of the project, with an estimated cost of US$ 1.59 billion, will start immediately after PPA is agreed and signed. He noted 25 percent of the funding needed will be in the form of company equity, while the remaining 75 percent will be financed by bank loans.

PTBA will develop the PLTU together with China Huadian. China Huadian holds majority shares of 55 percent in the project and Bukit Asam holding the remaining 45 percent.

Editing by Roffie Kurniawan