PLN signs PPA for PLTU Cilacap expansion

State owned electricity firm PT Perusahaan Listrik Negara (PLN) signed on Friday the Power Purchasing Agreement (PPA) for another expansion unit of PLTU Cilacap coal fired power plant in Cilacap, Central Java with a capacity of 1x1000 MW.

The PPA was signed by PLN?s President Director Sofyan Basir and Mohamad Rasul, President Director of PT Sumber Segara Primadaya (S2P), the owner of the power plant, at PLN?s headquarters in Jakarta.

The so-called PLTU Cilacap Expansion Phase 2 is part of the 35,000 MW power projects, PLN said, adding S2P is a consortium comprising PT Sumber Energi Sakti Prima (51 percent) and PT Pembangkitan Jawa Bali (49 percent), a subsidiary of PLN.

PLTU Cilacap now has the capacity of 2x300 MW. At present, S2P is in the phase of developing PLTU Cilacap Expansion Phase 1 with a capacity of 1x660 MW, which is expected to be completed this year. The PLTU Cilacap Expansion Phase 2 will be built adjacent to the existing power plant in Karang Kandri village, Kesugihan district, Central Java.

S2P was awarded the contract to build the expansion unit through direct appointment in line with the Minister of Energy and Mineral Resources (MEMR) Regulation No. 03/2015 which allows direct appointment as long as the new power plant will be built at the site of an existing power plant.

Mohamad said the project needs an investment of US$1.094 billion, 80 percent of which is expected to be foreign loan. Financing close is expected to be achieved In October 2016. The construction is projected to take 39 months and absorb 1,500 workers. It is expected to enter Commercial Operation Date (COD) in the first quarter of 2020.

Editing by Johannes Simbolon