Indika pulls out from Antam?s Pomalaa power project
Tuesday, December 29 2009 - 01:28 AM WIB
Antam?s President Director Alwin Syah Loebis confirmed in Jakarta last week that Indika had decided to withdraw from the project to build a 2 x 75 MW coal-fired power plant in Pomalaa.
?Indika said it would focus on other project,? he was quoted as saying. But Alwin said Antam and other partner PT Nava Bharat would go ahead with the project despite Indika?s withdrawal.
The project would go on schedule and it was expected to be completed in 2013, he said, adding that Antam and Nava Bharat were finalizing an agreement on the establishment of a joint venture to build and operate the power plant.
Antam will only take 20 percent in the project, he added.
The power plant which will be built with an investment of about US$300 million will provide electricity supply for Antam?s ferronickel processing plant in Pomalaa. When it is completed, the power plant will replace the existing diesel power plant operated by Antam.
Meanwhile, Antam is preparing the re-tender of an EPC contract to build a chemical grade alumina plant in Tayan, West Kalimantan in cooperation with Japanese companies Showa Denko and Marubeni Corporation.
?At this time there are six contractors interested in the project,? he said, adding that the tender was expected to be completed in February or March 2010.
Antam said earlier that it plans to re-tender the EPC contract to develop the Tayan project as price offered by the EPC tender winner, Kawasaki Heavy Industry, is considered too high.
He however did not disclose the price offered by the Japanese firm.
He said that Japan Bank for International Corporation (JBIC) had expressed its commitment to providing funding for the construction of the US$400 million plant which would have a capacity of 300,000 tons a year.
The construction is expected to take 28 months, he said. The plant is initially expected to start production in 2011. (*)