Jakarta Globe reported that Bosowa Group, a Makassar based conglomerate with diversified business interests, plans to build a 300 MW coal fired power plant in Jeneponto, South Sulawesi, at a cost of USD 330 million. The plant will be funded through Bosowa Energy.
Mr Erwin Aksa CEO of Bosowa Corporation, the holding company of the group, said in a statement that 60% of the funding would come through a loan from China Construction Bank. Local lenders will also participate but to a lesser degree. The new power plant will be located adjacent to the group's existing coal fired plants in Jeneponto.
Bosowa has two operating coal fired power plants in the district, each with a capacity of 125 MWs. The two plants cost Bosowa a combined USD 250 million, and the group has secured a deal to sell 200 MWs of electricity to state power utility Perusahaan Listrik Negara at 5.5 cents per kilowatt hour. This price excludes the cost of procuring coal.
The remaining output will be used as reserves by PLN in case it needs additional power supplies.
Bosowa said the two Jeneponto plants had been put on full operational status after the second unit passed firing and steam blowing tests. Construction of the plants took only 19 months, well ahead of the planned schedule of 30 months.
Mr Erwin, who is also president director of Bosowa Energy, said the combined 250 MW plants would provide power and boost the electricity supply for Makassar, the capital of South Sulawesi. They will also provide power to the western part of the province, and help PLN save IDR 4 trillion in fuel costs.
He added that "PLN's plants will be able to stop using diesel. Industry in South Sulawesi will also benefit by receiving a good electricity supply."
In addition to the third plant in Jeneponto, Bosowa is looking to build two other coal fired power plants, each with a capacity of 300 MW. It did not say where the plants would be located.
Mr Erwin said that "We are processing all of the licenses in Jakarta. While we are waiting for that, we are already starting to prepare some of the equipment, such as the construction equipment."
Both projects are expected to start next year and be in operation by 2014.
Source - Jakarta Globe
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