RI, China to sign agreements on development of three major energy projects

The Indonesian government hopes it will be able secure business deals for the development of three major energy-related projects from Chinese investors during President Bambang Susilo Yudhoyono?s visit to China this week, Kompas reported from Beijing Thursday.

Mahendra Siregar, the deputy of the Coordinating Minister of Economy, told the daily that there were a number of projects to be offered to Chinese investors during the President?s official visit.

?But based on our evaluation, only three of them are feasible and ready for signing,? he was quoted as saying.

The three projects include;

- The 2,400 MW coal-fired power plant which will be built in South Sumtara by PT Bukit Asam, PLN, PT Indika Inti Energi, the local government of Muara Enim in cooperation with China Huadian Corporation. The project which will be financed by Chinese Export and Import Bank and China Development Bank will absorb investment of up to US$2.1 billion.

- The development of coal transportation system in South Sumatra, which will include the construction of a 28-km coal tunnel and 84-km railway tracks. The project which will cost about US$10.1 billion will involve a consortium of Chinese companies including CITI and China Coal Group.

- Tanjung Jati A power project which will be built by Bakrie Power, Chengda, Bumi Resources and MSA Group. Bank of China is expected to finance the project. (*)