PLN signs PPA with Genting?s unit

By Hiski Darmayana

 

State owned electricity firm PT Perusahaan Listrik Negara (PLN) has signed a Power Purchase Agreement (PPA) with PT Lestari Banten Energi (LBE), a subsidiary of Malaysian firm Genting Bhd., on electricity supplies from a 1x660 MW coal fired power plant to be built by the latter in Serang regency, Banten.

 

The power plant project called PLTU Banten is scheduled to start commercial operation in the second half of 2017.

 

?Still, we hope the company to speed up the completion of the project so that it can sooner start commercial operation and help PLN reduce its oil fuel consumption rate,? PLN?s President Director Nur Pamudji said on Tuesday, adding that the power plant will supply around 4,380 GWh of power to the Java-Bali grid per year.

 

Under the PPA, PLN will pay 5.999 US cents per kWh for power from PLTU Banten. The contract is valid for 25 years.

 

LBE will equip the power plant with boiler using super-critical technology. The project is estimated to cost $1 billion with financial closing deal expected to be clinched within 12 months after the signing of the PPA. The funds are expected to be sourced from several banks including Citibank and RHB bank.

 

?The project has become a special one because it will be developed without guarantee from the government. LBE said Indonesia?s investment grade has become a guarantee for the project,? Nur said.

 

LBE is 95 percent-owned by Lestari Listrik Pte Ltd, an indirect wholly owned subsidiary of Malaysian conglomerate Genting. The remaining 5 percent stake in LBE is held by PT Hero Inti Pratama.

 

Editing by Johannes Simbolon