Tanjung Jati B expansion project to start construction soon
Tuesday, August 29 2017 - 08:11 AM WIB
Construction of the planned Tanjung Jati B coal-fired power plant expansion project with capacity of 2x1,000 MW in Central Java is expected to start at the end of this month.
The Tanjung Jati B unit 5&6 project will use the ultra-super critical technology, said Ari Basuki, a General Manager at PLN said on Tuesday.
Minister of Energy and Mineral Resources Ignasius Jonan is scheduled to lead the groundbreaking ceremony.
The project will be developed by a consortium called PT Bhumi Jati Power (BJP) at an estimated investment of around US$4 billion. Members of the consortium include PT Unitra Persada Energi (a unit of IDX-listed heavy equipment firm PT United Tractors Tbk), Sumitomo Corp and Kansai Electric Co.
UT Corporate Secretary Sara K. Loebies confirmed that groundbreaking of the project will be held at the end of this month.
The consortium signed in December of 2015 the power purchase agreement (PPA) with state-owned electricity firm PT PLN, under which the latter will purchase the electricity output from the Tanjung Jati B expansion project for 25 years. It secured loans from lenders at the of March.
PLN said in March that the first unit of 1,000 MW of the Tanjung Jati B expansion project is expected to be completed in 50 months after the financial close, and the second unit of another 1,000 MW in 54 months. The project is expected to be in full operation in second semester of 2021.
Editing by Reiner Simanjuntak