DSSA: Sumsel-5 power plant to start contribute revenue this year
Saturday, February 6 2016 - 03:34 AM WIB
IDX-listed energy and mining firm PT Dian Swastatika Sentosa Tbk (or DSSA) said that its nearly completed 2x150 MW Sumsel-5 coal-fired power plant in South Sumatra will start contributing to company revenue this year.
Hermawan Tarjono, Director and Corporate Secretary of DSSA, said that the project is currently at the stage of commissioning and testing, or nearly 100 percent complete.
He added that the project is expected to contribute US$25 million in revenue this year. ?All have been running on schedule, there will be further development later on so that the (revenue) contribution will be larger. For now, it?s only 2x150 MW,? Hermawan said to Petromindo.com.
The $400 million project is located in Musi Banyuasin Regency. The output will be purchased by state-owned electricity firm PT PLN under a 25 years power purchase agreement.
Aside from Sumsel-5, DSSA is also planning to develop a 2x50 MW Kendari-3 coal-fired power plant in Southeast Sulawesi. The company is currently seeking the required permits for the project, and in talks with the EPC contractor from China.
?The power purchase agreement has been signed with PLN on March 3, 2015, land acquisition has been completed. Construction is expected to start this year, in the hope that operation can begin in 2018,? Hermawan explained.
The planned $200 million project is located in Southeast Sulawesi?s Konawe Regency.
The power plant business currently accounts for 9.7 percent of DSSA?s total revenue. The company will have a combined capacity of 700 MW when the Sumsel-5 and Kendari-3 have been completed.
Editing by Reiner Simanjuntak