PTBA to start mine-mouth power plant construction soon

State coal mining firm PT.Tambang Batubara Bukit Asam (PTBA) said that the construction of its Banjarsari 2x100MW mine mouth power plant in South Sumatra would start in the near future.

?The construction of the project is expected to start at the end of April or early May this year,? PTBA?s President Director Sukrisno said in a parliamentary hearing on Thursday.

The construction costs were estimated at around US$239 million, he added.

PTBA has a 41 percent shares in the joint venture that owns the power plant, PT. Bukit Pembangkit Innovative (BPI), with PT Navigat Innovative Indonesia and PT Perusahaan Listrik Negara's (PLN) subsidiary PT. Pembangkit Jawa-Bali owning 39 percent and 20 percent respectively.

Electricity from the power plant will be sold to PLN at 3.78 US cents per kwh.

PTBA will supply 1.15 million tons per annum of coal for the power plant.

BPI has secured Rp.1.64 trillion (US$= Rp9,100) from Bank Mandiri and Bank Ekspor Indonesia and has appointed Chinese firm Jiannxi Electric Power Overseas Engineering as contractor to build the power plant and PT. Cita Contract as transmission developer. (bernard)