Huadian starts work on Bali power plant

China Huadian Group Co, one of China's five largest state-owned power generation enterprises, announced it started construction of a coal-fired steam power plant in Bali on Tuesday, in a bid to ease the island's electricity shortage.

The new facility, with a total investment of up to $638 million, sits on a coast of the island about 120 km north of Bali's capital Denpasar, the firm said as reported by the China Daily.

Phase I of the plant has an installed capacity of 3x142MW and is expected to be operational in the first half of 2014.

Henky, representative from Indonesian state utility PT Perusahaan Listrik Negara, said the poor infrastructure in Indonesia, especially the insufficient supply of electricity, has been the main hurdle to the country's economic development.

Indonesia, the biggest economy in Southeast Asia, is currently facing an electricity deficit.

"Investment from China is very important for the country's development on infrastructure sector," he added.

China has invested more than $7 billion in Indonesia's power and infrastructure sectors since the establishment of the strategic partnership between the two countries in 2005, according to Chinese embassy to Indonesia.

China Huadian Group, serving as an independent power producer in this project, currently owns and controlling two thermal power plants in Indonesia, one is in Batam. (*)