DSS to expand capacity of S. Sumatra power plant

By Thomas R. Sembiring

IDX-listed coal mining and energy company PT Dian Swastatika Sentosa Tbk (DSS) said it plans to expand capacity of the South Sumatra 5 (Sumsel 5) coal-fired power plant by another 300 MW.

DSS Director and Corporate Secretary Hermawan Tarjono said Wednesday that the expansion project is expected to start end of this year when the current 2x150 MW South Sumatra power plant project located in the province?s Musi Banyuasin Regency is scheduled for completion.

Investment requirement for the expansion of the power plant is estimated at US$480 million, about 70 percent to be financed via loan from China Development Bank (CDB), while the remainder from internal funds.

As has been previously reported, DSS has signed an MoU with CDB on a $510 million loan to be used to help finance two power plant projects including expansion of the South Sumatra 5 power plant and another in Kendari, Southeast Sulawesi.

Editing by Reiner Simanjuntak