Tri Bayu plans to build 4,200 MW power plant in South Sumatra

PT Tri Bayu Buana Energindo (PT TBBE) plans to build a Coal-Fired mine mouth power plant with total capacity of 4,200 megawatt near coal mining area in Musi Rawas regency, South Sumatra, Investor Daily reported on Wednesday.

The company's president director Teddy Setiawan said in Jakarta on Tuesday that total investment for the mine-mouth power plant which would have four power generation units, would reach about US$4 billion or about Rp 40 trillion.

He said that the power plant would be developed gradually with the first unit with a capacity of 2 x 600 MW to be built in 2007. The other three units each with a capacity of 100 MW will be built gradually until 2015.

The power projects will be financed by Japan Bank for International Corporation and commercial banks. The funds to be provided by the banks will account for about 70 percent of the total funds, while the remaining 30 percent will be financed by equity.

He said the company would cooperate with two Japanese companies Sojitz Corporation and Japanese Utility in the construction and operation of the power plant. "The Japanese companies will be up to 90 percent of PT TBBE's shares," he added.

He said that the company was now waiting for licenses from the Ministry of Energy and Mineral Resources to go ahead with the plan. (*)