Govt, PLTU Jateng developer sign power purchase agreement
Friday, October 7 2011 - 02:44 AM WIB
The power plant which will have capacity of 2x1,000 MW is one of the largest infrastructure projects to be built under a public private partnership (PPP) scheme.
The power purchase agreement was signed between state utility company PT PLN and the power plant developer PT Bhimasena Power Indonesia, a consortium consisting of Japanese firms J-Power (34 percent) and Itochu (32 percent) and PT Adaro Power (34 percent), a subsidiary of coal miner PT Adaro Energy.
The consortium, which won the project tender earlier this year, will spend more than Rp 30 trillion to construct the power plant.
The project is guaranteed by the government. A guarantee agreement was also signed on Thursday between Finance Minister and PT Penjamin Infrastruktur Indonesia, as guarantor and Bimasena Power.
Other agreements were also signed, namely recourse agreement between Finance Ministry, as guarantor, and PT PLN, recourse agreement between PT PII, as guarantor, and PT PLN.
The project will be developed through build-own-operate-transfer (BOOT) scheme with a concession of 25 years. The project is expected to commence commercial operation at end of 2016. The coal-fired power plant will use low-caloric coal, that will help PLN reduces cost of production.
Those attending the signing agreement include Coordinating Minister for the Economy Hatta Rajasa, Finance Minister Agus Martowardojo, Energy and Mineral Resources Minister Darwin Zahedy Saleh, head of National Investment
Coordinating Board Gita Wirjawan, President Director of PLN Dahlan Iskan and CEOs of J-Power, Itochu and PT Adaro.
The project will employ at least 5,000 local people and provide opportunities for Indonesian companies to supply their products to the power plant project. (romel/roffie)