PT Bukit Asam plans to build new power plant

State owned coal-mining company PT Batubara Bukit Asam (PT BA) will build a new coal-fired power plant in Lahat regency, South Sumatera to support its operation and help cope with the power shortage in the area.

The company's president RA Sunardi said in Mura Enim on Saturday that intensive preparations had been made for the construction of the new power plant. "We are still waiting for a green light from the government to go ahead with the plan," he was quoted as saying by Palembang Pos.

The planned power plant, which will have two power generating units each with a capacity of 200 Megawatt, will be built in Banjarsari village in the Merapi district, Lahat.

Sunardi said that the construction of the new power plant was initially scheduled for commencement in 1998 but it was delayed as part of the government's retrenchment measure in the wake of the economic crisis, which hit the country in late 1997.

Besides the power project, the company's six other large-scale projects were also delayed. They include the company's plan to open new mining project in the Banjar Sari village, the expansion of Tanjung Api port, the expansion of transportation facilities to Java and coal upgrading facilities.

Sunardi said that the seven projects will require total investment of about US$25 billion, most of which will be the form of bank loans. (*)