PLN, TLB sign PPA

State-owned electricity firm PT Perusahaan Listrik Negara (PLN) signed on Wednesday a power purchase agreement (PPA) with independent power producer PT Tenaga Listrik Bengkulu (TLB) for a planned coal-fired power plant in Bengkulu.

PLN said in a statement that TLB, which is 70 percent owned by Sinohydro Hongkong Ltd and 30 percent by IDX-listed Intraco Penta Tbk, plans to build a 2x100 MW coal-fired power plant in Teluk Sepang Village, Kampung Melayu District.

Financial close for the US$360 million power plant project is expected to be reached within nine months said, President Director of TLB, Cao Yuesheng.

Construction will be completed in 36 months in the hope that the power plant will start operation in 2019.

Editing by Reiner Simanjuntak