Indonesia PLN seeks investors for Sumatra power plant

Published: 29 Apr 2010 02:22:40 PST

JAKARTA, April 29 - Indonesian state electricity firm PT Perusahaan Listrik Negara (PLN) is seeking investors to build a $750 million, 600 megawatt (MW) coal-fired power plant in South Sumatra, the company said on Thursday.

Indonesia, Southeast Asia's biggest economy, is struggling to generate enough power to fuel its growth and is trying to boost electricity supplies through crash programmes led by PLN and independent power producers.

"This is an independent power producer project and the partnership will be under a build, own and transfer program," the company said in a statement.

It said the proposed plant would be located close to a coal mine mouth in South Sumatra to reduce fuel transport costs. It is expected to be operational by 2014.

"PLN will sign the cooperation for 25 years, and when the partnership ends the plant will be transfered to PLN."

PLN said it plans to build four other coal-fired power plants near mines on Sumatra island with combined total capacity of 1,400 MW.

The first phase of the national programme to add 10,000 MW of generating capacity from 35 new coal-fired power plants is already underway, but most plants are still under construction.

The government is finalising a second phase which seeks to add another 10,000 MW using coal, geothermal and renewable energy resources.