Business

Chinese firm to build coal-fired
power plant in W. Kalimantan

PT Praba Indopersada, a subsidiary of general contractor firm Praba Group of Indonesia and Chinese firm Gezhouba Group, won a bid to build state-owned electricity company PLN’s coal-fired power plant in Bengkayang, West Kalimantan.

PT Praba Indopersada President director Hartanto Yohanes Lim said in Jakarta on Monday that the plant construction, which would have an output capacity of 2 x 50 megawatts (MW) would cost about US$172 million.

He said the project would be partly financed by loans from Chinese banks and should help cope with the province’s power deficit.

“The power plant is expected to ease the acute electricity shortage in the area,” he told The Jakarta Post.

He added that the province currently bought electricity from a Malaysian plant in neighboring Kuching to meet the energy shortage.

The project is among the cooperation agreements signed during Chinese Premier Wen Jiabao’s recent visit, during which he pledged $19 billion in investment and loans.

Gezhouba and Praba signed a memorandum of understanding along with other representatives of Chinese and Indonesian government and firms on Saturday when Wen concluded his three-day visit to the country.

Hartanto said the plant’s construction, located on a 30-hectare plot, would start its first phase in June this year and the second phase in September. It is expected to operate by 2014.

“We have finished feasibility studies for the plant. PLN is dealing with the permits,” he said, adding that construction preparations were ongoing.

He said Praba would carry out construction works, while Gezhouba would handle mechanical and electrical works.

Parit Baru II is the second power plant project to get underway in West Kalimantan after the Parit Baru I coal power plant project located in Parit Baru, Pontianak regency, commenced last year.

Both are part of the 93 power plants to be built under the second 10,000-megawatt scheme launched by the government last year.

The power plants are expected to provide up to 10,153 MW of power with around 5,770 MW, or 57 percent, to be generated for Java and Bali, while the rest will go to other parts of the country.

With the scheme the government wants to promote the use of clean and renewable energy. However, the coal-fueled power plant will still make a significant contribution. Coal plants will generate around 3,312 MW (33 percent) to the total capacity, slightly below geothermal plants, which will produce around 3,977 MW (39 percent).

Of the total 10,153 MW of power, PLN is expected to provide almost half, around 5,118 MW, while the remaining 5,035 MW will be supplied by independent power producers.

The construction of all the plants is estimated to require around $15.96 billion in investments, of which PLN will contribute around $5.90 billion.

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