PLTU Jawa-7 project has yet to obtain permit for coal terminal

The planed 2x1,000 MW PLTU Jawa-7 coal-fired power plant in Serang, Banten, has yet to obtain the required permit from local port authority for the construction of a special coal terminal, Bisnis Indonesia reported on Monday.

The paper quoted Agung Wicaksono, Deputy Head of Electricity Development Program Implementing Unit (UP3KN), as saying that the permit is necessary to pave the way for the planned financial closure of the project in October of this year.

He explained that the authority has yet to issue the construction permit for the planned coal terminal amid ongoing dispute between two large investors over a nearby coastal reclamation project. Agung previously expressed concern that the reclamation project might hamper water access for the planned power plant, urging related ministries to resolve the issue.

PT Pembangkitan Jawa Bali (PJB) and China Shenhua are teaming up in the US$2 billion power plant project, with the latter holding 70 percent interest, and the former 30 percent. China Development Bank is expected to help finance the project, which is part of the government?s five-year program to develop a combined 35,000 MW power plants until 2019.

Agung expects the PLTU Jawa-7 power plant project can be completed in 2019. (*)