More foreign investors eye South Sumatra electricity project

At least seven investors from neighboring Malaysia and Singapore have expressed interest to take part in the construction of a coal-fired power plant in the mine mouth of PT Bukit Asam's coal mine in Tanjung Enim, South Sumatra, Investor daily reported on Tuesday.

DR SK Chua, who represented the Malaysian and Singaporean investors, met South Sumatra governor Syahrial Oesman in Palembang on Monday. During the meeting, Chua expressed the interest of the investors from the two neighboring countries to involve in the construction of the power plant.

The governor said that he warmly welcome the initiatives of the foreign investors, and added that four of the investors had signed a memorandum of understanding (MOU) agreements with the local government to join the mine-mouth power project.

"They are still waiting for business partners to develop the mine-mouth power plant," he said.

Meanwhile Chua said that some of the Malaysian investors were interested in building a power plant near the Tanjung Enim coal mine to save the transportation cost. "Rather then importing coal which requires a high cost, it will be better to build a power plant here," he said. But he did not elaborate. (*)