Ekploitasi suspends two power plant projects
Thursday, March 5 2015 - 02:26 AM WIB
IDX-listed coal miner PT Eksploitasi Energi Indonesia Tbk said it has temporarily halted the construction of two coal-fired power plants in Riau as its lender suspended the lending facility after the investment cost escalated.
The company said in a statement to the IDX on Wednesday that the creditor, Bank Rakyat Indonesia (BRI), wants certainty that its investment in the two projects can be safely returned.
Eksploitasi is developing two coal-fired power plants in Rengat and Tembilahan, Riau Province, each with capacity of 2x7 MW. About 65 percent of the investment requirement is to be financed via loan from BRI.
The company did not say the reason for the escalation in the investment cost of the two power plant projects. It, however, said in a statement that it would continue to pursue to complete the projects, and is seeking to negotiation with state-owned electricity company PT PLN for higher electricity selling price to make the projects economically feasible.
Meanwhile, Kontan reported that the Rengat power plant project requires an investment of Rp 104.09 billion. The Tembilahan project initially was projected to cost about 50.69 billion, but half way, the investment has already surged to more than Rp 144 billion.
Editing by Reiner Simanjuntak