UT subsidiary to invest $210m in PLTU Tanjung Jati B project

Petromindo|Boim

IDX-listed heady equipment and mining firm PT United Tractors Tbk (UT) said that its subsidiary PT Unitra Persada Energia (UPE) is ready to invest up to US$210 million in the PLTU Tanjung Jati B coal-fired power plant unit 5&6 project in Central Java Province.

UT said in a statement on Tuesday that UPE had on June 30 signed a document stating its commitment to take up new shares to be issued by PT Bhumi Jati Power (BJP) worth not more than $210 million. UPE is a co-owner of BJP, which is developing the project.

?The objective of the transaction is to fund the development and operation of 2x1,000 MW ultra-supercritical power-generating units with BOT scheme in the area of Tanjung Jati B unit 5&6 in Central Java Province by BJP,? UT said in the statement.

BJP is a joint venture company officially set up in February of this year by UPE (25% shares), Netherland?s KP Power Development B.V. (25%), and Japan?s Sumi Energy Ventures LLC (50%) to develop and operate the PLTU Tanjung Jati B unit 5&6 project.

Editing by Reiner Simanjuntak