Musi Banyuasin regency builds coal-fired power plant

PT Muba Power, a company owned by South Sumatra?s Musi Banyuasin (Muba) regency administration will build a coal-fired power plant with a capacity of 2 x 60 Megawatt in cooperation with Capital Turbine Ltd to cope with the acute shortage of the electricity supply in the regency, local newspaper Palembang Post reported on Thursday.

The memorandum of understanding (MOU) agreement on the construction of the power plant was signed in the regency?s capital Sekayu on Wednesday. The newspaper did not explain how the two companies would cooperate in the construction of the power plant but said that under MOU, Muba Power will among others supply the coal for the power plant for 25 years.

Muba regent Alex Nurdin said he hoped that the construction of the new power plant would be able to provide sufficient electricity supply to both households and local industries.

During the occasion, the local authority?s company PT Muba Oil also signed a memorandum of understanding (MOU) agreement with Chinese company Shengli Oilfield on exploration of oil and gas in the province. (*)