Bukit Asam to allocate $225 million for new power plants

State owned coal mining company PT Tambang Batubara Bukit Asam (Persero) Tbk will allocate up to US$225 million from its own budget for the development of two giant coal fired power plants PLTU Sumsel 9 and 10 in South Sumatra, Bisnis Indonesia reported on Monday.

The company?s Corporate Secretary Joko Pramono said in Jakarta last week that Bukit Asam was among the bidders of the two power plants, which would have combined generation capacity of 1,800 megawatt.

?We submitted the pre-qualification document on Jan, 31,? he said, adding that Bukit Asam would form a consortium with other companies to develop the two power plants which would cost about US$2.7 billion to build.

?The required funds will reach $2.7 billion and will be financed with bank loan (75 percent) and equity (25 percent). As Bukit Asam will have 33 percent stake in the consortium, it will have to provide $225 million,? he said.

State owned electricity company PLN opened the tender for the development of PLTU Sumsel 9 and 10 in November 2012. PLTU Sumsel 9, which will have capacity of 2 x 600 MW, is expected to begin operation in 2017, while PLTU Sumsel 10, which will have capacity of 1 x 600 MW, is expected to begin operation in 2018.

The two power plants will become independent power producers which will sell its electricity to PLN as the sole buyer. (*)