Medco to build coal-fired power plant in Tanjung Pinang

PT Medco Energi International Tbk will build a coal-fired plant in the provincial capital of Riau islands province Tanjung Pinang this year with total investment of about US$20 million, Bisnis Indonesia reported Monday.

Aries Parjimanto, the director of Medco Energi, said that the company would build the power plant, which would have a power generation capacity of 2 x 10 MW, in cooperation with other local firms including PT Barata Indonesia.

"We are currently negotiating with other members of the consortium on share ownership, and the establishment of a joint venture that will operate the power plant," he said, adding that the power project would be part of Medco's investment program for 2007.

Aries said that he hoped negotiations with other members of the consortium could be soon concluded so that the company would be able to begin its construction this year.

In Dec 2006, State electricity company PT Perusahaan Listrik Negara (PLN) said it is ready to sign a cooperation agreement with private power plants this month on 12 private coal-power power plant projects outside Java, which targeted to start operation in 2009 or 2010 under the government?s fast track program.

Tanjung Pinang coal-fired power plant is part of the 12 government?s fast track program project.

Under the ministry of energy and mineral resources regulation, the electricity price produced by private power plants ranges from 4.5 to 4.95 U.S. cents per kWh. (*)