Gorontalo completes 70% of land acquisition for power plant project
Tuesday, August 16 2016 - 03:36 AM WIB
PT Gorontalo Listrik Perdana (GLP), a subsidiary of IDX-listed coal mining firm PT Toba Bara Sejahtra Tbk, has completed acquisition of 70 percent of the 50-hectare land requirement for its planned 2x50 MW coal-fired power plant in Gorontalo Utara, Gorontalo Province.
Toba Bara Director Arthur Simatupang told petromindo.com last week that five banks including Indonesian state-owned banks, and banks from China and Malaysia are currently engaged in a ?beauty contest? to participate in financing the power plant project.
He said that the company will continue to focus on completing acquisition of the required land for the project until end of this year, as well as getting the required permits. Land acquisition has often become a serious obstacle in power plant project in the country.
He expected financial close for the project, also known as the Subalgut 1 project, to be made within the next 12 months.
GLP signed a Power Purchase Agreement (PPA) with the state-owned power company PT PLN on July 14, 2016, after previously winning a tender under the scheme of Independent Power Producer (IPP) participated by the company. 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