Biidznillah Tambang Nusantara (BTN) and BTN Power joint venture, BTN Energy Prima (BEP) has partnered with China Machinery Engineering Corporation (CMEC) for construction of coal-fired power plants in Riau, Sumatra, Indonesia.
Construction of the three 150MW coal-fired power plants in the Pelintung Dumai Industrial Area at a cost of $675m is scheduled to start July this year for planned completion by April 2018, Jakarta Post reports.
CMEC deputy general manager Yaejun Chao said Dumai has an industrial complex but is experiencing an electricity shortage.
"We hope the area will have enough electricity with the new power plants," Chao added.
BEP president director Harijono said, "The power plants will provide electricity for plants in the industrial area as well as for households."
Approximately 245MW of the total energy generated by the power plants is scheduled to be sold to factories operating in the area at IDR900 to IDR1, 200/kWh, while the remaining will be distributed to households in Riau.
BTN president commissioner Muhammad Ma’shum said, "For the distribution to households, we will later cooperate with [state-owned electricity firm] PT PLN and the price will be determined by them."
CMEC is expected to provide financing and a technology package of engineering procurement and a contribution (EPC) contract on a mutually acceptable repayment arrangement upon project completion, according to the news agency.
Under the contract, BTN will supply 3.2t of coal per year for the power plants from its mining sites in Kalimantan and South Sumatra.
The company is expected to provide a down payment of 15% of the total cost before construction starts, and will pay the rest to CMEC upon completion.