PTBA to sell power from mine mouth power plant for 4.4 U.S. cents
Thursday, May 31 2007 - 02:01 AM WIB
State coal miner PT Tambang Batu Bara Bukit Asam (PTBA) would sell power supplies from its planned Banko Tengah (4 x 600 MW) mine mouth power plant in Tanjung Enim, South Sumatra to state electricity firm PT PLN for 4.4 U.S. cents per kWh, Bisnis Indonesia daily reported on Thursday.
President Director PTBA Sukrisno disclosed that the price included a 0.9 U.S. cents cost, which PLN must pay the use of transmission line from the plant to Java.
“The price is very low as other parties set the price (of their power supplies) at 6.0 U.S. cents per kWh. PLN has agreed with the price and (we) only waits for the time to sign an agreement,” he said on Wednesday.
Sukrisno expected that both parties could sign power purchase agreement and complete the establishment of joint venture company this year. “If the joint venture is established this year, the plant will be built next year so as to be able to start operating in 2011,” he went on.
The project belongs to PTBA (28%), China Huadian Corp (55%), PT PLN (8%), PT Indika (8%) and BUMD (1%). It needs an estimated investment of US$2.18 billion. However, the project has thus far not showed a good progress in financing. (*)