GLP completes land acquisition for Gorontalo power plant project
Tuesday, August 1 2017 - 09:06 AM WIB
Power company PT Gorontalo Listrik Perdana (GLP) said it has completed acquisition of around 65-ha of land for the 2x50 MW PLTU Sulbagut 1 coal-fired power plant project in Gorontalo Province.
?The land acquisition process takes about eight months (to complete). The process has been completed. It?s rather long because land acquisition and permitting process really takes time (to complete),? said GLP President Director, Tries Nainggolan to Petromindo.com on Monday.
He said that the acquired land will not only be for the power plant but also for supporting facilities such as coal storage. The power plant will require around 600,000-650,000 tons of coal with CV of 3,800-4,400 kcal/kg to be supplied by GLP parent, IDX-listed coal miner PT Toba Bara Sejahtra Tbk.
GLP on July 11 signed a lending agreement worth US$171.78 million with Bank Mandiri to help finance the Sulbagut-1 power plant project, which is estimated to cost around $210 million-$230 million.
GLP, which is 60 percent owned by Toba Bara Sejahtra, 20 percent by Shanghai Electric Power Construction Co Ltd, and 20 percent by PT Toba Sejahtra, has signed a 25-year power purchase agreement (PPA) with state-owned electricity firm PT PLN for the project, which is targeted to be completed in 2019/2020.
The PLTU Sulbagut-1 project forms part of Toba Bara?s diversification strategy into power plant business as it aims to become an integrated energy firm by 2020. Toba Bara also plans to develop PLTU Sulut-3 project in Minahasa Utara Regency, North Sulawesi Province.
Editing by Reiner Simanjuntak