PTBA to complete feasibility study on Banko power project in Q3

State-owned coal miner PT Tambang Batubara Bukit Asam expected that feasibility study on a 4x600 megawatt coal fired power plant in Banko Tengah, South Sumatra, will be completed by the third quarter of this year.

?The feasibility study on the power plant will be finished by the third quarter and we will continue with an environmental assessment on the project,? PTBA corporate secretary Milawarma told Investor Indonesia daily recently.

Milawarma said the proposed power plant, which is to be located near PTBA?s concession, will use between 10 and 12 million tons of coal annually.

He said PTBA will hold 20 percent stake in the project, while China Huadian will take a 55 percent. Meanwhile, the rest will be held by state-owned power company PT Perusahaan Listrik Negara.

Milawarma also said PTBA had planned to allocate about US$380 million for the project, however, the amount could be change following the result of financial study conducting by its financial advisor PT Bahana Securities, which was expected to be completed in August.

The power plant is expected to be operated by 2009 or 2010 and it will connect to the Java-Bali electricity grid system, Milawarma added. (*)