The new supercritical-pressure coal-fired power plant, to be delivered to Paiton Energy, is slated to start a commercial operation in 2012. The plant will be constructed at a site adjacent to an existing power plant in the Paiton complex, approximately 150km southeast of Surabaya.

The power generated at the plant will be sold to PT PLN (Persero), Indonesia’s state-owned power utility company, for 30 years based on a long-term power purchase agreement. MHI’s Nagasaki Shipyard & Machinery Works will manufacture and supply the steam turbine and boiler. Civil construction work will be undertaken by TOA Corporation of Japan. Mitsui & Co will handle the trade particulars.

Last month, Paiton Energy signed a $1,215m project financing agreement with the Japan Bank for International Cooperation (JBIC) and eight commercial banks. Although construction work at the Paiton complex has been already partially started, conclusion of the loan agreement will now accelerate the expansion project, getting construction under way on full scale, MHI said.