Mine Mouth Power project in South Sumatra in disarray

The government?s plan to develop a mine mouth power plant in Banjarsari, Lahat, South Sumatra has been in disarray as the conflicts between developers PT Indonesia Power and PT Ridho Utama Abadi get worsening, Media Indonesia reported on Monday.

Chief Commissioner of PT Ridho Uatama Abadi, HM Soleh Thamrin, said that his company would not cooperate with state electricity company PLN?s subsidiary PT Indonesia Power in the construction of the plant, which would have a power generating capacity of 600 Megawatts.

?PLN?s subsidiary would only provide old machines, and if they are used it would affect the plant?s future operation,? he was quoted as saying by the daily.

According to earlier reports, PT Indonesia Power has signed a memorandum of understanding agreement with state owned coal mining company PT Tambang Batubara Bukit Asam (PT BA) to build the mine mouth power plant. The plant, which will use coal from PT BA as to operate its activities will later sell the electricity to PLN.

Local company PT Ridho Utama is also interested in the construction of the plant. The company is trying to get approval from the provincial government to win the project. (*)