ITMG sets up consortium to win Jawa 7, 5 power projects

Competition for the Jawa 7 and Jawa 5 coal-fired power plant projects with combined capacity of 4,000 MW has intensified as giant companies are participating in the bidding process, Kontan reported on Tuesday.

Kontan quoted Director of IDX-listed coal miner PT Indo Tambangraya Megah Tbk (ITMG) Leksono Poeranto as saying that his company is teaming up with affiliated firms under parent Thai-based Banpu Group, and Ratchaburi Electricity Generating Holding Pcl, a power plant operator in Thailand, in tender for the planned projects, in which Indonesia?s state-owned electricity company PT PLN?s subsidiary PT Pembangkit Jawa Bali will have 30 percent stake.

Tender for the 2x1,000 MW Jawa 7 coal-fired power plant is expected to be held in October of this year, while tender for the Jawa 5 (with similar capacity) is currently in progress. The Rp 40 trillion Jawa 7 power plant will be developed in Bojanegara, Banten Province, while the Rp 40 trillion Jawa 5 plant will be located near Jakarta or in West Java, to be decided by the winning bidder.

Kontan said that IDX-listed coal giant PT Adaro Energy Tbk and IDX-listed engineering and construction firm PT Wijaya Karya Tbk are also participating in the tender for the projects.

Meanwhile, IDX-listed coal giant PT Bukit Asam Tbk?s Corporate Secretary Joko Pramono said that while his company did not participate in the tender for the projects, it wants to participate in supplying the required coal. (*)