Cheng Da of China to build power plant in Palembang

Cheng Da Chemical Engineering Co of China, in cooperation with local company PT Asrigita will build a steam power plant Palembang, South Sumatra under a build, operate and transfer (BOT) contract with the state electricity company PLN, Bisnis Indonesia reported on Monday.

Minister/Counsellor for Economy and Commerce at the Chinese Embassy, Tan Weiwen, said recently that the 130-Mwpower plant would be built with a total investment of about US$100 million would be used by the local government to meet the need of electricity for the national sports competition PON XVI that would be held in Palembang next year.

"The agreement of the construction of the power had been signed last year, and the construction works have started early this year," he said.

The construction of the power plant which will use natural gas from a number of gas fields in South Sumatra is part of the realization of the bilateral economic cooperation agreement between China and Indonesia signed in the First Indonesia-China Energy Forum held in Nusa Dua, Bali, last year.(*)