PLN, HBAP seal deal on power generated from 2x620 MW plant

State owned utility firm PT Perusahaan Listrik Negara (PLN) has signed an agreement with PT Huadian Bukit Asam Power (HBAP) on the supply of electricity supply for 25 years from a 2x620 MW mine mouth power plant to be built by HBAP in Tanjung Enim, South Sumatra.

HBAP is an independent power producer (IPP) owned jointly by state coal miner PT Bukit Asam (45 percent) and China Huadian Hong Kong Limited (55 percent), which in December 2011 secured the rights to build the Banko Tengah mine mouth power plant (SumSel 8) under the Build, Own, Operate, Transfer (BOOT) scheme.

The Power Purchasing Agreement was signed on September 17 by PLN President Director Nur Pamudji and his HBAP counterpart Zhao Longjun, a media statement released on Monday revealed.

It did not elaborate on the agreed price for the electricity supply. On September 12, HBAP and Bukit Asam also signed Coal Supply Agreement on the supply of coal to the power plant, amounting to 5.4 to 6 tons per year for 25 years. No price was mentioned then either.

HBAP plans to start the constuction next year with commercial operation scheduled for early 2011.

Editing by Dadan Wijaksana