United Tractors eyes power plant projects in South Sumatra

United Tractors, one of Indonesia?s major distributors of heavy equipment, is currently taking part in the tender for the construction and operation of two large coal-fired power plants in South Sumatra as part of the company?s expansion plan in the power generation business, Kontan reported on Saturday.

The company?s corporate secretary Sara K. Loebis said that UT would team up with PT Astratel Nusantara, another subsidiary of Astra International, in the tender of the two power plants ? PLTU Sumatra Selatan 9 and PLTU Sumatra Selatan 10.

Sara said that if they won the tender, Astratel would be in charge in providing the infrastructure of the power plants, while United through its subsidiary PT Pamapersada Nusantara would provide the coal supply.

?The tender process is underway. We hope we will win the projects,? he said.

PLTU Sumatra Selatan 9 and PLTU Sumatra Selatan 10 coal fired power plants will have generation capacity of 3 x 600 megawatt each.

The construction of the two power plants will require investments of about $2.7 billion with an assumption that every megawatt will cost $1.5 million.

United also recently acquired the entire stake of coal mining firm PT Borneo Berkat Makmur for about $51 million to further strengthen the company?s coal mining business. (*)