PTBA eyeing S. Sumatra minemouth power plant

State coal mining firm PT. Tambang Batubara Bukit Asam (PTBA) said it had submitted pre-qualification bid to build 2x100 MW mine-mouth power plant in South Sumatra to state electricity firm PLN.

PTBA said in a report to The Jakarta Stock Exchange that the Banjarsari minemouth project was a joint venture between PTBA, PLN’s subsidiary PT. PJB and a private firm called PT. Navigat Innovativ Indonesia.

The joint venture initially submitted a power purchase agreement proposal to PLN on April 2004, but later PLN decided to hold open tender to develop minemouth power plants in Sumatra and Kalimantan.

Earlier, PTBA president Ismet Harmaini said that the consortium would need some US$200 million to develop the project, with coal supplied from PTBA’s mine.

Along with PTBA, Thai energy group Banpu Plc., is also known to have submitted bid document to build 2x100 MW power plant in its mine concession in South Sumatra.

PTBA expected the pre-qualification winner would be announced shortly.

In a bid to overcome power supply shortage in Sumatra and Kalimantan areas and to secure cheaper electricity prices, PLN is inviting potential investors to submit proposals to develop power plants. (alex)