Toba hopes financial close for PLTU Sulut-3 power project next year

By Nova Farida

IDX-listed coal mining firm PT Toba Bara Sejahtra Tbk hopes that financial close for its 2x50 MW PLTU Sulut-3 coal-fired power plant project in Minahasa Regency, North Sulawesi Province, to be concluded next year.

Taba Bara?s indirect subsidiary PT Minahasa Cahaya Lestari, which is 90 percent owned by PT Toba Bara Energi and 10 percent by Sinohydro Corp Ltd, signed the power purchase agreement (PPA) for the project with state-owned electricity firm PT PLN in April of this year.

?Usually, the financial close takes about one year to complete after the signing of the PPA,? said Head of Investor Relations at Toba Bara Sejahtra, Iwan Sanyoto to Petromindo.com on Tuesday.

Iwan said that the power plant project is estimated to cost about US$215 million-$220 million including for the construction of the required 7-km transmission line. Construction process, which will start once the financial close has been reached, will take about 39 months to complete.

The power plant will get coal supply from Toba Bara at a volume of 600,000-650,000 tons per year, with CV of 3,800-4,400 kcal/kg.

Editing by Reiner Simanjuntak