The PLN president director in a press statement here on Tuesday said the electricity sale was the first done by IPP from India.
"The Indian investor will build Mulut Tambang South Sumatra 7 coal-fired power plant in South Sumatra with a capacity of 2x150 MW in the sub-district of Keluang, Musi Banyuasin, South Sumatra whose electricity production is to be sold to PLN," he said.
PLN has earlier cooperated with companies from the US, Japan and China.
Madhucon Project Ltd. is cooperating with Madhucon Sugar & Power Industries Ltd. and PT Madhucon Indonesia to build the PLTU plant.
The signing of the power purchase agreement was done on Tuesday by Nur Pamudji and president director of PT Madchun Sriwijaya Power, N Krishnaiah as a representative of the consortium of developers.
Nur said the investment for the project reached US$455 million. "The project is set to be completed in May 2016 or in 36 months since the financing date," he said.
After the power purchase agreement is signed the developer is given a year or until May 2013 for a financing close.
The project is planned to receive funding from Indian Bank which is later to be verified by PLN.
"If funding and also other requirements set in the power purchase agreement have been met the financing date will be declared and after that construction will be done," he said.
The electricity to be produced by PLTU Sumsel (South Sumatra) 7 will be distributed through Tapping T/L interconnection transmission with a capacity of 275 kV between Aurduri and Betung.
"I hope the project could be done as soon as possible so that it could increase electricity supply for the southern part of Sumatra," he said.
PLTU Sumsel 7 is part of the several PLTU Mulut Tambang projects to be carried out in South Sumatra with a capacity of 4,200 MW. (*)
Editor: Kunto Wibisono
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