PTBA, PLN and Malaysian firm to build power plant

State coal mining company PT Bukit Asam (PTBA), state electricity company PLN and Malaysian company Tenaga Nasional Berhard (TNB) will team up to build a coal-fired power plant (PLTU) with a capacity of 3 x 600 megawatt in Indragiri Hulu,Riau.

PTBA?s corporate secretary Budi Laksono said in Jakarta on Monday that the three companies would spend up to Rp 15 trillion (US$1.59 billion) to build the power plant which would be located in PTBA?s coal concession area.

He said that a memorandum of understanding on the construction of the power plant was signed in June. ?Hopefully, a feasibility study could be carried out in September,? he said, adding that the three companies would set up a consortium to carry out the feasibility study in 2013.

Budi said that the construction of the power plant would be commenced as soon as the feasibility study was completed. ?The construction is expected to be completed in 2016 or 2017,? he added.

The consortium which will build and operate the power plant will be 25 percent owned by PTBA, 37.5 percent by PLN and another 37.5 percent by TNB.

About 50 percent of the electricity to be generated by the power plant would be exported to Malaysia through a submarine cable which would be built in 2017. (*)