PT KMA builds power plant near coal mining
Friday, May 11 2001 - 04:30 AM WIB
Palembang-based PT Karya Makmur Armada (KMA) plans to build a 300-megawatt coal-powered power plant in Sungailicin, Musi Banyuasin regency, South Sumatra, at a cost of US$250 million.
KMA president Rivai Thambrin said his party had secured financing supports from a consortium of Middle Eastern and Chinese investors, that would finance up to 85 percent of the total investment.
Meanwhile, KMA had been ready with the 15 percent investment fund that would be used as a working capital.
"We have already had funding sources as we just signed memorandum of understanding with a consortium of Middle Eastern and Chinese investors," he said at a hearing with officials from the South Sumatra administration.
Rivai said that the construction of the power plant would commence in 2002, and it would need three years to complete. The power plant would have three units, each of which would have 100-megawatt capacity. One unit would be ready in 2003, the next would be in 2004 and the last would be in 2005.
Whenever necessary, the capacity could still be enhanced as each unit could be upgraded and enhanced to produce up to 200 megawatts.
Meanwhile, Amir Rusdi from the directorate general of mining and mineral resources at the Ministry of Energy and Mineral Resources, said that the power plant would be located at Sungailicin district in Musi Banyuasin regency - a change from the initial plan to build the power close to mining sites in Tanjungenim.
Amir said the initial location chosen in Tanjungenim does not have enough water supplies for the power plant, and therefore, the site was changed to Musi Banyuasin, that had enough water sources and was close to Tanjung Api-Api port.
The South Sumatra administration secretary Radjab Semendawai the construction of the power plant would be badly needed to prevent power glut in the province, that recorded a 14 percent increase in electricity demand per annum.
Radjab said the province currently recorded a deficit of 60 megawatt of electricity, and if there is no new power plant, this deficit would increase to 126 MW in 2003 and 167 MW in 2004.
He said the province had also expected power supplies from two new power plants, namely the 2 X 45 MW water-powered power Wai Besai power plant and 3 X 70 MW water-powered Musi power plant - all will be ready by 2004. (*)