Indonesia's coal miner PT Adaro Energy Tbk and other members of consortium tied up into PT Bhimasena Power Indonesia has executed a long term power purchase agreement (PPA) with the state-controlled PT Perusahaan Listrik Negara (PLN) this afternoon.
The PPA includes the construction of a coal-fired power plant with a total capacity of 2,000 MW in Central Java (Central Java Power Power Plant) and a 25-year supply of electricity to PLN. The total project cost is US$4 billion.
Bhimasena is a company that is established by Electric Power Development CO Ltd, PT Adaro Power, subsidiary of Adaro Energy, and Itochu Corporation. In addition to the PPA, a guarantee agreement was also signed by and among the Government of Indonesia, PT Penjaminan Infrastruktur Indonesia, and Bhimasena.
J-Power-Adaro-Itochu consortium established Bhimasena, in July 2011 to build, own and operate a coal-fired power plant, which would be amongst the largest in Asia.
Adaro is an integrated coal mining and energy company, which currently operates the largest single-site coal mine in the Southern hemisphere and is the largest coal supplier to the Indonesian domestic market. In 2010, ADARO produced and sold 42.2 million tones and 43.8 million tonnes respectively.
Disclosure: No position at the stock mentioned above.
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