Medco hopes financial close of Riau power project in May 2018
Tuesday, October 3 2017 - 01:24 AM WIB
Petromindo
Independent power producer PT Medco Power Indonesia (MPI) expects financial close of its 275 MW PLTGU Riau combined-cycle power plant project to be concluded in May of next year, which will pave the way for construction process to start.
MPI President Director Fazil Alfitri told Petromindo.com on Monday that the power plant, to be located in Tenayan Raya District, Pekanbaru, Riau Province, is targeted to start operation in 2021. He added that the company has just recently completed land acquisition for the project.
?Financial close is targeted to be completed in May 2018. Funding will come from ADB, JICA, and IFC,? he said, referring respectively to Asian Development Bank, Japan International Cooperation Agency, and the International Finance Corporation of the World Bank.
The estimated US$300 million power plant project will be developed by
PT Medco Ratch Power Riau, which is 51 percent owned by MPI and the remaining 49 percent held by Ratchaburi Electricity Generating Holding PCL. The consortium signed a 20-year power purchase agreement with state-owned electricity firm PT PLN in April.
Electricity from the power plant will be distributed to the Central and Southern Part of Sumatra System via a 150 kV transmission to the 150 kV substation in Tenayan and 150 kV substation in Teluk Lembu owned by PLN.
Editing by Reiner Simanjuntak