Prakarsa Mitra to build coal-fired power plant in East Kalimantan

Local firm PT Prakarsa Mitra Abadi plans to build a coal-fired power plant with a capacity of 2 x 25 megawatt in Penajam Paser Utara regency, East Kalimantan in cooperation with the local administration, Kaltim Post reported on Wednesday.

The memorandum of understanding (MoU) for the construction of the power plant was signed by Penajam regent Andi Harahap and Prakarsa president director Setio Rahardjo in the regent?s office on Tuesday.

Speaking to reporters following the signing of the MoU, Setio said that the company would invest up to US$80 million to build the coal-fired power plant.

The funds for the power plant construction would be provided by Regency Group Limited and Borneo Group, he said.

Setio said that the company would soon carry out a feasibility study on the project which would be located near a coal concession area in Mentawir sub-district.

According to him, the electricity to be produced by the power plant would be sold to state-owned electricity company PLN to cope with the power shortage in the regency. ?We will also negotiate with PLN about the price of the electricity to be sold to the company,? he added. (*)