United Tractors eyes Riau mine-mouth power plant

After its failure to win the tender for the construction of a new power plant in South Sumatra, PT United Tractors Tbk (UT) will again take part in the bidding for the development of a mine-mouth power plant with a capacity of 2 x 2,300 MW in Riau.

The company?s Finance Director Gidion Hasan said last week the company would spend up to Rp 7 trillion to finance the coal-fired power plant, 30 percent of which would be provided from internal funds and the remainders to be obtained from banks.

Gidion said that UT would cooperate with a local company in bidding for the power plant project.

Recently, the company took part in the tender for the construction of a coal-fired power plant in South Sumatra but it was defeated by another bidder. In the bidding for the $600 million project , UT teamed up with PT Wijaya Karya Tbk and the local government.

The Riau power plant was actually offered at the same time as the South Sumatra project, but it will be retendered because in the first tender, UT was the only bidder. (*)