Three investors to start construction of Cilacap coal-fired power plant

Three investors ? PT Geo Dipa Energi, PT Sumber Energi Sakti Prima and Chengda Engineering Corporation ? will commence the construction of coal-fired power plant in Cilacap, Central Java, Bisnis Indonesia newspaper reported in its Friday edition.

The construction will begin with the laying of first beam on December 22. The first pole to be installed by Minister of Energy and Mineral Resources, Central Java provincial governor Murdiyanto said.

The project will cost around US$510 million, of which some 70 percent of the financing will come from the Chinese investor.

With a 2x300 Megawatt (MW) capacity, the coal-fired plant will be built on a 50-hectare land, which is controlled by Indonesia?s Army. The investors will have a barter type of agreement with Army for using the land for the plant.

This project is expected to create around 2,000 new jobs and these jobs will be filled from the local community. It will also help the local industries, who are facing frequent reductions in electricity supplies, by providing adequate power supply, Murdiyanto added. (*)