Swastatika has 1 year to get financing for mine mouth power plant
Monday, December 5 2011 - 08:09 AM WIB
?We signed the power purchase agreement with PLN on Nov 3, 2011. However, we obtained approval from the energy ministry on 21 November. So, we are given time by PLN to secure financial closing until 21 November 2012,? said Hermawan.
The mine mouth power plant will have output capacity of 2x150 MW with estimated investment of US$ 400 million. Around 70-80 percent of the funding will come from loan.
The coal need for the project will come from coal consessions owned by PT Manggala Alam Lestari with coal need of around 2 million tons per annum.
At present, the company is negotiating with the EPC (engineering, procurement and construction) contractor about technical aspects of the power plant, including specification of machines to be used as well as commercial aspects such as guarantee and sanctions should the project be delayed.
?We are still seeking funding from both domestic and foreign financial institutions. We also ask EPC contractor from China to help secure loan for the project,? said Hermawan.
Hermawan said one domestic bank has expressed interest to provide portion of loan needed by the company.
The mine mouth PLTU Sumsel-5 will be constructed in 2013, with commissioning expected to start in 2015. (giok)