Foreign consortium ready to fund Batam?s power plant project

A consortium of foreign banks, made up of Islamic Development Bank, Export & Import Bank Malaysia, Bhd, Bank Muamalat Malaysia, Bhd, and RHB Bank Group, is ready to fund the 4x25 Megawatt (MW) coal-fired power plant project in Kabil, Batam, Bisnis Indonesia reported Saturday.

Henry Supanni, President Director of PT Tria Talang Emas (TTE), a 70 percent-owned subsidiary of Malaysian firm Ho Hup Construction Company Berhad that will build the US$170 million power plant, said that all of the license-related matters had already been completed and thus the company?s engineering, procurement and construction contract could be implemented.

?If everything runs well, the Kabil coal-fired power plant will start operation in August, 2010,? he said.

In February 2006, Ho Hup through TTE signed a power purchase agreement with PT Pembangunan Kota Batam (PKB). for the design, construct, own, operate and maintain the power plant.

Under the agreement TTE will design, construct, own, operate and maintain the power plant and is obligated to deliver all the power to PKB. (*)