Construction of Bangko power plant in South Sumatra delayed

The government has decided to delay the construction of the 4 x 600 MW mine-mouth Bangko Tengah power plant in Tanjung Enim, South Sumatra until 2012 in order to avoid an oversupply in the power production in the province, Investor Daily reported on Monday.

According to the minister, the Bangko power plant would remain the government's priority but its construction would be carried out after 2009 or in 2012 in order to avoid an over supply.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta Friday that the government would instead focus on the construction of small and medium-sized power plants that would be built under the crash program.

He said that there were at least six coal-fired power plants to be built in Sumatra as part of the crash program, including PLTU Meulaboh (2 x 100-150 MW), PLTU Sibolga Baru (2x100-150 MW), PLTU Medan Baru (2x100-150 MW), PLTU Tarahan Baru (2x100-150 MW) and PLTU Sumbar Pesisir Selatan (2x100-150 MW)

The mine-mouth plant will be majority owned by China Hua Dian Corporation, with a 55 percent stake. Local companies PLN, coal producer PT Tambang Batubara Batu Asam, and PT Indika Inti Energi will own the other 45 percent (*)