PLN opens tender for S. Sumatra mine-mouth plant IPP

State electricity firm PLN said it would open PQ tender for development of a 2x300 MW mine-mouth power plant in South Sumatra on Friday under Independent Power Producer (IPP) scheme.

Director Murtaqi Syamsudin told reporters on Thursday that the proposed power plant called Sumatra Selatan 6 would be built in Muara Enim regency.

Murtaqi said the winner will be given right to operate the plant for 25 years under Build, Own, Operate and Transfer (BOOT) scheme.

Investors who are eligible to participate in the tender are companies or consortia (one consortium consists of maximum of four members), which already have coal mining concession with validity of at least 10 years. PLN also requires bidders to be financially strong with EBITDA of at least 40 percent of the project value, he said.

Murtaqi estimated that the winner will need to spend US$750 million to build the power plant, which is expected to start operations in 2014.

The Sumatera Selatan 6 plant is part of the five mine-mouth power plants PLN plans to build in Sumatra. The other four are Sumatera Selatan 5 (2x150 MW), Sumatera Selatan 7 (2x150 MW), Riau (2x300 MW) and West Sumatra (2x100 MW). (Godang)