Sinar Mas’ Energy Holding Pushes Ahead With Coal-Fired Power Plants
Jakarta. Dian Swastatika Sentosa, Sinar Mas Group’s energy and infrastructure holding company, is working on two new coal-fired power plant projects worth $620 million, a director at the company said.
Hermawan Tarjono, a director at Dian Swastatika, said on Wednesday that the two projects consist of a 2×150 megawatt power plant project called Sumsel-5 Musi Banyuasin in South Sumatera, and a 2×50 MW of Kendari-3 in Southeast Sulawesi.
He said construction of the Sumsel-5 plant, estimated to cost about $420 million, has reached 90 percent completion and by the end of the year is set to open for operation.
“The coal need for Sumsel-5 is expected to reach 2 million tons per year. We can take coal supply from the company’s [Dian Swastatika] subsidiary Andalan Satria Lestari,” said Hermawan in Jakarta on Wednesday.
Meanwhile, the Kendari-3 is scheduled to begin construction in early 2016, and will cost about $200 million. Dian Swastatika has set a target to start operating the plant in 2018.
Hermawan said the plant would require 500,000 tons of coal per year. Dian Swastatika is seeking to secure coal for its Kendari plant from its listed coal mining arm Golden Energy Mines.
The director said the company would seek about 75 percent of the financing for the $620 million project from bank loans and the remaining from equity injection.
In March the company signed a loan worth $510 million with the China Development Bank (CDB) to help finance the power plant.
“The process for disbursion of loans from CDB really depends on the progress of the project,” Hermawan said.
“For example, Kendari-3 now is still dealing out with land acquisition. If it can be settled soon, then the loans will also be disbursed faster.”
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