DH Power plans increased capacity of Sumatra mine-mouth power plant project

DH Power, a unit of IDX-listed energy and mining contractor firm PT Darma Henwa said it planned to boost capacity of its proposed mine mouth power project in Pendopo coal mine, South Sumatra.

CEO Kazuya Tanaka told Petromindo.Com that the company now planned additional 2x300MW power plant, which will become onstream in 2013. Other unit, with capacity of 2x660MW will become onstream in 2016, he said.

Initially, the company only planned to build 2x600MW power plant in Pendopo. Additional capacity is planned after study showed that demand for electricity is still high,? he said.

Tanaka said the company will invest US$2 billion in the project, adding that the company is in talks with two overseas major electricity firms over the possibility to chip in the project. He did not give names.

Japanese company Sumitomo Corp. will be appointed EPC contractor while Mizuho Bank will act financial adviser, he said.

Power Purchase Agreement with state electricity firm, which will buy all of electricity generated, is underway, he said. (bernard)