Sumitomo to double Tanjung Jati B capacity
Monday, January 5 2009 - 04:49 AM WIB
The firm, through its wholly-owned subsidiary PT Central Java Power (CJP) will build two other power generators at its Tanjung Jati B power plant complex, called Tanjung Jati B Unit 3 and Unit 4 respectively, each with an installed capacity of 660 MW, Sumitomo?s CEO Susumu Kato said in the company?s website.
CJP has built two power generators in the location, called Tanjung Jati B Unit 1 and Unit 2 respectively, each with an installed capacity of 660 MW.
The expansion project cost amounts to around 200 billion yen (US$2.2 billion), the firm said.
Sumitomo and CJP recently signed the financing contracts for the project based on project financing, headed by Japan Bank for International Cooperation and co-financing lenders (Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation and BNP Paribas).
CJP has signed a leasing agreement to supply state owned electricity firm PT Perusahaan Listrik Negara (PLN) with power from the new power generators for 20 years.
CJP started leasing the existing plant to PLN in October, 2006, and signed the leasing contracts for the expansion plant with PLN on Nov. 4, 2008. PLN will be responsible for the operation, maintenance and fuel supply of the expansion plant, as currently done by PLN for the existing Plant, according to the website.
The contract for the engineering, procurement and construction for the expansion plant is executed between Sumitomo and CJP, where Toshiba Corporation and Toshiba Plant Systems & Services Corporation supply the turbine and generator, Mitsubishi Heavy Industry, Ltd. supplies the coal firing boiler, Black and Veatch Corporation supplies the auxiliary facilities for the boiler and Mitsui Engineering and Shipbuilding Co., Ltd. is in charge of the civil works.
The firm projected Indonesia?s electricity demand to grow by 7.0 percent annually up to 2016, and there would a tight supply-demand condition. (Bodega)