Medco plans to build power plant in Batam

IDX-listed energy firm PT Medco Energi International Tbk plans to build a 70 MW power plant in Batam with estimated investment cost of about US$70 million, Bisnis Indonesia daily reported Tuesday.

The paper quoted Director Budi Basuki as saying that the company, possibly via subsidiary PT Medco Power Indonesia, was seeking to form a consortium with Japanese investors to develop and finance the simple cycle gas turbine power plant project.

?We?re still in talks with the Japanese side, hopefully there will be certainty in the next 1-2 months,? Budi said, adding that the project is expected to start production in early 2015.

Medco will use part of its 2014 capital expenditure plan of $500 million, which is a 66.67 percent higher than this year?s $300 million, to help finance the project.

The planned Batam power plant project is not Medco?s first venture in the sector. The company, via Medco Power Indonesia, has operated two gas-fired power plants, and one mobile power generation in Batam, and three gas-fired power plants in South Sumatra. The combined capacity of the six plants is 190 MW. Medco has a 49 percent stake in Medco Power Indonesia, which is majority owned by Saratoga Power. (*)