JAKARTA (TheInsiderStories) - Board of management of Korea Electric Power Corp., (KEPCO) approved a business plan to build Jawa 9 and 10th coal-fired power plants in Banten, despite controversies over profitability and the environment, South Korean media reported today (06/30). The project worth of US$3.46 billion with a total of 2,000 megawatts (MW) capacity.
This month, a number of environmental activists demonstrated at the South Korean Embassy in Jakarta. They criticized the companies for funding the dirty energy power plant project. This decision shows that President Moon Jae In’ Green New Deal’s commitment is just only talked.
Last year, the state run firm clinched a deal with PT Barito Pacific Timber Tbk (IDX: BRPT) to participate in the project. The company will invest $51 million to win a 15 percent stake in the special-purpose company that also involves PT Indonesia Power, unti of state-owned electricity producer, PT Perusahaan Listrik Negara (PLN).
Doosan Heavy Industries & Construction Co., a power plant maker, also won a 1.6 trillion-won (US$1.33 billion) order to build the project. The construction of the power plant is anticipated to begin as early as next month, although the process can be delayed depending on situations.
The developer has signed a memorandum of understanding with PT Indo Raya Tenaga (IRT) for the construction of the Jawa 9 & 10 ultra-supercritical coal-fired power plants in Cilegon, Banten. The two units are currently scheduled to be built in 2023 and will be operated by IRT, a joint venture owned by the consortium.
Barito Pacific hold 49 percent of IRT shares and the other owned by Indonesia Power and KEPCO. Indo Raya Tenaga is in charge to develop the power plant in order to increase electrical power supply to industry, business and household in Java - Bali grid by 2023.
The projects is part of the 35 gigawatt power plant projects run by PLN until 2024. The consortium won the right to operate the two power plants for 25 years after the completion.
US$1: 1,199.81 Won
Written by Staff Editor, Email: theinsiderstories@gmail.com
