Central Korporindo to build power plants in S. Kalimantan

Publicly listed coal trader Central Korporindo International (CNKO) said Monday it planned to build two coal-fired power plants with a total capacity of 35 megawatts in South of Kalimantan

In a statement, CNKO said investment for the project would total US$35.57 million and construction would last for one year starting in January 2004.

It said that state-owned power firm PLN had agreed to buy power generated by the power plants to supply Pangkalan Bun, Sampit, and Batu Licin Districts. "The sales and purchasing agreement with PLN will be completed by this month (October)," CNKO said.

CNKO said that the plan reflected the company's decision to change its business focus from coal trading to power generation.

It also said it planned to launch right issues this year to finance the development of the power plants.

It added that its coal trading division would supply around 84,000 tons of coal per year to the power plants, while the remaining needs would be supplied by coal producers. (robert)