PTBA, partners to form joint venture company on Banjarsari project

State-owned coal miner PT Tambang Batubara Bukit Asam and its partners have agreed to establish a joint venture company, namely PT Bukit Pembangkitan Innovative (BPI), to develop the proposed 2x100 megawatts Banjarsari power plant in South Sumatra.

PTBA corporate secretary Milawarma said Thursday PTBA will own a 41 percent shareholding in BPI, while PT Pembangkitan Jawa Bali, a subsidiary of state-owned electricity firm PT PLN, and PT Navigat Innovative will hold 20 percent and 39 percent, respectively.

A senior official of PLN said recently that PTBA had won the tender to develop Banjarsari power plant.

According to PTBA, construction of the minemouth project would cost around US$ 203 million and it would require coal supply of around 1.2 million tons per year from PTBA?s mine.

Milawarma said about 70 percent of the project cost was expected to be sourced from external finance sources, while the remaining 30 percent would be provided by BPI.

He said engineering, procurement and construction of the project will be started next year.

Milawarma also said PTBA had appointed PT Bahana Securities to find financing alternatives for PTBA on the Banjarsari project. (godang)