PTBA renegotiates PPA for S. Sumatra power plant

IDX-listed state coal mining firm PT.Tambang Batubara Bukit Asam Tbk (PTBA) said on Friday that it was renegotiating Power Purchase Agreement (PPA) with state electricity firm PLN for its proposed Banjarsari 2x100-MW mine-mouth power plant in South Sumatra due to soaring investment costs.

The company did not give detail.

PTBA Corporate Secretary Eko Budhiwijayanto said in August 2008 that investment for the power plant was estimated to soar to US$310 million from $241 million estimated earlier.

The company said that the plant is expected to become onstream in 2011 with annual coal consumption of 1.1 million tones.

PTBA has 41 percent stake in the power plant.

Meanwhile, the company also reported that it was currently in PPA negotiation with PLN for its proposed 4x600-MW Bangko Tengah mine-mouth power plant, also in South Sumatra.

PTBA owns a 28 percent stake in the Bangko Tengah project, with China Huadian owning 55 percent, PT Indika Energy about eight percent, PLN eight percent and the local administration-owned company BUMD Sumsel owns the remaining one percent. (alex)