Bukit Asam, Lanco to build US$120M power plant in Riau

State coal miner PT. Tambang Batubara Bukit Asam Tbk (PTBA) has partnered with infrastructure company Lanco Infratech Ltd, of India to develop a combined cycle power plant in Pranap, Riau, with a capacity of 2x300 megawatt (MW), and a total investment of between Rp 900 billion and Rp 1.08 trilion (around US$100 and $120 million) .

PTBA will be a majority shareholder in the joint venture with 51 percent ownership, the rest owned by Lanco.

?We'll set up a consortium with Lanco. Currently, we're participating in a tender,? said PTBA President Director Milawarma after an extraordinary meeting of shareholders (RUPSLB) in Jakarta on Thursday.

He said that his company had a very good chance to win the tender as so far they are the only participants in the tender. "It's very likely that the tender will turn toward a negotiation or a direct appointment".

Beside Pranap, Bukit Asam is also eyeing a development of combined cycle power plant in Muara Enim, Palembang, South Sumatra at the capacity of 600 MW. In this project PTBA will also partner with Lanco.

Lanco Infratech Ltd is a company listed in New York Stock Exchange (NYSE), US, and Bombay Stock Exchange (BSE), India .The company's business interests include constructions, electricity, EPC, and property.

Milawarma said that next year Bukit Asam will develop the combined cycle power plant Bangko Tengah in South Sumatera, with a capacity of 2x100 MW. The power plant, which will be in operation in 2015, is estimated to require coal between 4,5 and 5 million tons per year. (giok)