Primanaya Energi starts building mine mouth power plant

Tuesday, July 7 2009 - 12:42 PM WIB

PT Primanaya Energi has started building the US$230 million coal-fired PLTU Kebun Agung power plant in Lahat regency, South Sumatra.

Director General of Electricity and Energy Utilization at the Ministry of Energy and Mineral Resources Jacobus Purwono said the 2x125 MW mine-mouth power plant, built under the independent power producer (IPP) scheme, is one of the projects developed under the Phase Two 10,000 MW fast-track program.

The power plant is expected to meet electricity demand in South Sumatra which climbs by 11.3 percent annually, Purwono was quoted by the ministry?s website as saying.

Purwono, accompanied by state owned electricity firm PT Perusahaan Listrik Negera?s (PLN) President Director Fahmi Mochtar presided over the groundbreaking ceremony of the power project.

PLN signed the power purchase agreement with Primanaya on Oct. 31, 2007 over a period of 30 years.

The power plant is expected to start operation in 2012. The firm had appropriated 150 hectares of land for the location of the power plant. The engineering, procurement and construction (EPC) is handled by Chinese firms Harbin Haguo Development Co. and Hebei EPTC. The project is expected to absorb a total of 1,600 workers. (*)

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