Krakatau hopes to start construction of power plant project next year

By Thomas Sembiring

IDX-listed steel maker PT Krakatau Steel Tbk hopes to be able to start construction of its planned 2x80 MW coal-fired power plant in Cilegon, Banten, next year.

Krakatau Steel Chief Financial Officer Anggiasari Hindratmo, however, said that it would depend on the government?s willingness to provide a requested equity injection to help finance the company?s other projects.

?If the government can help, it (construction of the power plant) can be started as soon as possible in 2016,? she told Petromindo.com on Tuesday.

Total investment for the power project is estimated at around Rp 1.8 trillion. She said that state-controlled Bank Mandiri and state-owned infrastructure fund PT Sarana Multi Infrastruktur have expressed readiness to support the project.

Krakatau via its subsidiary PT Krakatau Daya Listrik (KDL) plans to build the power plant primarily to supply internal power need. Excess power will be distributed to the public.

KDL on Tuesday opened international bidding to select EPC contractor for a 2x350 ton steam/hr coal fired boiler for the 2x80 MW power plant.

Editing by Reiner Simanjuntak