GLP nearly completes acquisition of land for power plant project
Tuesday, November 1 2016 - 01:19 AM WIB
PT Gorontalo Listrik Perdana (GLP), a subsidiary of IDX-listed coal mining firm PT Toba Bara Sejahtra Tbk, has nearly completed acquisition of land required for the planned 2x50 MW coal-fired power plant in Gorontalo Utara, Gorontalo Province.
GLP President Director Arthur Simatupang told petromindo.com on Monday that the company has acquired 45-ha of the land requirement. The company initially planned to acquire a total of 50-ha for the project, but has now been expanded to 60-ha.
Arthur said that the land acquisition is targeted to be completed this year as further delay could make the acquisition cost increases.
He added that the company also aims to complete various other agreements as pre-conditions set by bankers to reach financial close. He reiterated that financial close is targeted to be completed in 12 months since the signing of the power purchase agreement (PPA) with state-owned electricity firm PT PLN in July of 2016.
The power plant project, also known as the Sulbagut I project, with a contract period of 25 years, will be developed by a consortium under the GLP, which is 60 percent owned by Toba Bara Sejahtra. The other partners in the consortium are PT Toba Sejahtra with a stake of 20 percent, and Shanghai Electric Power Construction Co. Ltd at 20 percent.
Editing by Reiner Simanjuntak