PTBA to start construction of Sumsel-8 power plant project end 2017
Saturday, July 29 2017 - 03:50 AM WIB
IDX-listed coal mining company PT Bukit Asam Tbk (PTBA) plans to start construction of the 2x620 MW Sumsel 8 mine mouth coal-fired power plant project in South Sumatra at the end of this year.
"We hope to start the construction at the end of this year or early 2018 at the latest," PTBA's President Director Arviyan Arifin said on Friday.
Arviyan said that the construction will begin once the ongoing amendment process of Power Purchase Agreement (PPA) with state-owned electricity firm PT PLN is completed.
Under the previous PPA, the electricity to be generated by Sumsel-8 will be transmitted to Java through an undersea cable. But PLN later changed the plan by allocating the electricity to Sumatra grid.
"The COD is in 2021 in accordance with the completion of power transmission by PLN," Arviyan said, referring to the commercial operation date target of the Sumsel 8 project.
PTBA is teaming up with China?s Huadian Group to develop the power plant project. The joint venture company called PT Huadian Bukit Asam Power has already completed acquisition of the required 103 hectares land for the project, which has obtained funding commitment among others from Bank of China.
Editing by Reiner Simanjuntak