PTBA names Jiangxi Electric EPC contractor for S. Sumatra mine-mouth

State coal mining firm PT.Tambang Batubara Bukit Asam (PTBA) announced on Thursday that its power plant firm unit PT.Bukit Pembangkit Innovative (BPI) has appointed Chinese firm Jiangxi Electric Power Overseas Engineering Co. as EPC contractor for Banjarsari 2x100MW mine mouth power plant in South Sumatra.

PTBA said the project value awarded to the Chinese company was US$175 million and is expected to be completed in 30 months. The company expects construction to start this year with completion seen in 2010.

Electricity from the proposed power plant would be connected to Sumatra distribution network and sold to PLN at US$ 3.78 cents per kwh.

PTBA will supply 1.15 million tonnes per annum of coal for the power plant.

PTBA has 41 percent shares in BPI with PT.Navigat Innovative Indonesia and PLN’s subsidiary PT.Pembangkit Jawa-Bali own 39 percent and 20 percent, respectively.

BPI is also expected to tender 26-km transmission line which will connect the power plant to Sumatra network.

The company said syndication of national banks would finance the project with closure expected by the end of this year. (denny)