Mabar Elektrindo to build coal-fired power plant in Medan

PT Mabar Elektrindo plans to build a 2x150 MW coal-fired power plant in Medan, North Sumatra, with construction scheduled to start in 2014, and projected to be completed within three years, Kontan daily reported Saturday.

The paper said that Mabar, which is owned by a Chinese investor, has signed a Head of Agreement (HoA) with state-owned electricity firm PLN and the Medan Industrial Zone (KIM) for the supply of the 300 MW electricity.

Benny Marbun, Head of Commercial Division at PLN, said that the electricity to be supplied by the US$500 million power plant is expected to be able to resolve the lingering power shortage in Medan Industrial Zone.

The power purchase agreement (PPA) is scheduled to be signed in early 2014. PLN is expected to buy the electricity at a price of between US0.08-0.09 per Kwh, while PLN to get a 20 percent margin in selling the power to industrial consumers in Medan. (*)