Govt may extend deadline for giant Batang power plant project

The government may extend the deadline for the financial closing of the giant 2x1,000 MW Batang coal-fired power plant in Central Java maid difficulties in land acquisition, Kontan reported Monday.

The paper quoted Lucky Eko Wuryanto, deputy for infrastructure development at the Office of the Coordinating Minister for the Economy, as saying that the draft of the revised presidential regulation to extend the deadline has been sent to the President?s Office.

Presidential Regulation No 67/2005 stipulates that PT Adaro Power, a subsidiary of IDX-listed coal giant PT Adaro Energy Tbk, and its partners including Japan?s J-Power and Itochu, must complete the financial closing for the Rp 30 trillion coal-fired power plant project on October 6 at the latest. The consortium, however, has been facing difficult times in acquiring the 228 ha land for the project amid opposition from certain groups of people in Batang, thus affecting the process to complete the financial closing. So far, only 187 ha has been acquired.

Japan Bank for International Cooperation reportedly has expressed interest to finance the project, pending the completion of the land acquisition.

Instead of starting from zero again, by repeating the tender for the project, the government is bent on relaxing the October 6 deadline for the financial closing of the project. (*)