IPB may seek for a new contractor for Lati power plant project

PT Indo PusakaBerau (IPB) may have to seek for a new contractor in the expansion of its PLTU Lati coal-fired power plant project in Berau Regency, East Kalimantan, if the current contractor continues to fail to start construction process by the end of September.

?This will be our last (favor for the contractor) as deadlines have been repeatedly missed. After end of this month, we?ll take firm action,? IPG Director Najamuddin told the local Koran Kaltim.

IPB owns and operates the 2x7 MW PLTU Lati coal-fired power plant, the output of which is distributed to state-owned electricity firm PT PLN and coal firm PT Berau Coal, according to its website.

IPB, a consortium comprising of PT Indonesia Power (a subsidiary of PLN) with a 47 percent interest, Berau Regency-owned company with a 49 percent interest, and private firm PT Pusaka Jaya Berau with a stake of 4 percent, is planning to develop a third 7 MW capacity unit.

Najamuddin said that further delay in starting the construction process will cause the company to suffer financial losses as the project is being financed with bank loans. (*)