Eksploitasi to sell assets of stalled power plant projects
Monday, June 26 2017 - 01:47 AM WIB
Petromindo
IDX-listed coal miner PT Eksploitasi Energi Indonesia Tbk said it is considering to sell the assets of two coal-fired power plant projects in Riau which have been halted.
Wim Adrian, Corporate Secretary of Eksploitasi told Petromindo late last week that the sale of the assets including machinery was one of the options being considered to help deal with the stalled power plant projects.
He, however, quickly said that the loss from the stalled projects was minimal for the company.
Eksploitasi suspended in 2015 two coal-fired power plant projects in Riau?s Rengat and Tembilahan, each with capacity of 2x7 MW as its key lender, Bank Rakyat Indonesia, halted lending due to sharp escalation in the investment cost. An attempt by the company last year to renegotiate for higher selling price of the electricity from the projects with state-owned electricity firm PT PLN failed, prompting the termination of the power purchase agreement.
Reports said previously 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