Sumitomo to double Tanjung Jati B coal power plant's capacity

State electricity firm PT Perusahaan Listrik Negara (PLN) said that Japan's trading company Sumitomo Corp will double the capacity of a coal-fired power plant Tanjung Jati B in Central Java at a cost of $1.3 billion.

Sumitomo under Independent Power Producers (IPP) scheme will expand Tanjung Jati B power plant to 2,640 megawatts from the existing 1,320 megawatts, PLN?s director Djuanda Nugraha Ibrahim said in Jakarta Thursday.

The new units are expected to be completed in the second half of 2010, he said.

The operation of the 1,320 MW Tanjung Jati B power plant was launched on Oct. 4 this year in a ceremony presided over by President Susilo Bambang Yudhyono.

PLN and Sumitomo signed a preliminary agreement during President Susilo's visit to Japan this week. According to the agreement, Japan Bank for International Cooperation (JBIC), the government's overseas lender, will finance the project, Djuanda said.

Negotiations on power prices may be completed early next year and the rate will be similar to those at the first two units, he said.(godang)