DSSA to start construction of Kendari-3 power project in 2016

By Tri Subhki R

IDX-listed energy and mining firm PT Dian Swastatika Sentosa Tbk (DSSA) will start the construction of a 2x50 MW coal-fired power plant called Kendari-3 in South Konawe, Southeast Sulawesi, in 2016.

?We are currently conducting land acquisition and permitting processes. If those processes are cleared, we expect to start construction in 2016 and start the operation in 2018,? DSSA Director Hermawan Tarjono said on Wednesday.

DSSA signed a Power Purchase Agreement (PPA) with state-owned utility PT PLN (Persero) on May, 4, 2015 through its indirect subsidiary company PT DSSP Power Kendari.

Hermawan suggested that the Kendari-3 power plant will have coal supply from South Kalimantan mine operated by PT Borneo Indobara, an indirect coal subsidiary of DSSA via IDX-listed PT Golden Energy Mines Tbk (GEMS).

?Coal supply from Borneo will be approximately 500,000 tons per year,? Hermawan said. DSSA is currently considering the appointment of Engineering Procurement and Construction (EPC) contractor from China.

Editing by Reiner Simanjuntak