China to build $200 million coal-fired power plant in S. Sumatra

Chinese investors are planning to build a coal-fired power plant in Musi Banyuasin regency, South Sumatra, at a cost of US$200 million, The Jakarta Post reported on Friday quoting the Antara news agency.

Musi Banyuasin regent Alex Noerdin said in Jakrta the power plant project would be completed in three years.

The agreement was inked in Hong Kong on Nov. 7 between Chinese investors grouped in a consortium called Gohuwa and PT Petro Muba, a company that belongs to the Banyuasin regency administration.

The power plant has a power capacity of 2x100 megawatts, said Alex.

Under the agreement, Gohuwas would finance the technology, power plant construction and the research, while Petro Muba would be responsible for preparing land for the power plant, arranging the construction permit and supplying coal. Building more power plants is seen as necessary as only 46 percent of the regency's area is covered by power grid networks.(*)