Construction of PLTU Sumsel 8 to start next year

The engineering, procurement and construction (EPC) works of PLTU Sumsel 8 coal-fired power plant in Bangko Tengah, South Sumatera is expected to begin next year following the completion of the land acquisition for the project.

The coal-fired power plant which will have a capacity of 2 x 620 megawatt, will be built and operated by PT Huadian Bukit Asam Power, a subsidiary of state coal mining company PT Bukit Asam Tbk (PTBA) and Chinese company China Huadian Corporation.

PTBA?s Corporate Secretary Joko Pramono said in Jakarta last week that the construction works would begin in January as almost all the preparation process including the licensing and land acquisition had been completed.

He said that the government?s approval on the analyses of the industrial impact (AMDAL) of the power plant and required permits had been obtained soon after the sale and purchase agreement was signed by state electricity company PLN, which will buy the electricity from the power plant.

Joko said that the joint venture was now waiting for the loan disbursement from China Development BANK (CDB) which has pledged to provide US$1.13 billion in loans, or about 75 percent of the total investment which is expected to reach $1.59 billion.

China Huadian holds a 55 percent stake in the joint venture and PTBA owns the remaining 45 percent.(*)