PLN to sign PPA amendment with 12 IPP next month

State-owned electricity company PT Perusahaan Listrik Negara (PLN) will sign the amendment of power purchase agreement (PPA) with twelve independent power producers (IPPs) next month, the company?s director said on Monday.

PLN?s risk management director Murtaqi Syamsuddin said on Monday that the 12 IPPs include a consortium led by state-owned coal miner PT Tambang Batubara Bukit Asam (PTBA), which will build 2 x 100 MW Banjarsari mine-mouth power plant in South Sumatra.

He did not give details.

Meanwhile, PLN?s president director Dahlan Iskan said on Monday that the renegotiation on price with the PTBA-led consortium has concluded. The new price will be more than 5 U.S. cents per Kwh, he said.

Under the previous agreement, electricity from the power plant will be sold to PLN at 3.78 cents per kwh.

PTBA has a 41 percent stake in the consortium called PT. Bukit Pembangkit Innovative (BPI), with PT Navigat Innovative Indonesia and PT Perusahaan Listrik Negara's (PLN) subsidiary PT. Pembangkit Jawa-Bali owning 39 percent and 20 percent respectively.

PTBA will supply 1.15 million tons per annum of coal to the power plant.

BPI has secured Rp.1.64 trillion (US$= Rp9,100) from Bank Mandiri and Bank Ekspor Indonesia and has appointed Chinese firm Jiannxi Electric Power Overseas Engineering as contractor to build the power plant and PT. Cita Contract as transmission developer. (bernard)