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PTBA Signed the Amendment Power Purchase Agreement of South Sumatera Mine Mouth Power Plant-8 with PLN
PT Bukit Asam (Persero), Tbk. or PTBA through its subsidiary PT Huadian Bukit Asam Power (HBAP) together with PT PLN (Persero) signed an amendment of Power Purchase Agreement (PPA) South Sumatera Mine Mouth Power Plant-8 (PLTU Sumsel 8) with capacity 2 x 620 MW. The signing of PPA was conducted by Arviyan Arifin, President Director of PTBA and Sofyan Basir, President Director of PT PLN (Persero) represented by Supangkat Iwan, Director of PT PLN Procurement, and Fang Zheng, Chairman of China Huadian Hongkong Company Ltd in Jakarta (19/10) .
South Sumatera Mine Mouth Power Plant-8 is part of a 35,000 MW megaproject with PT Huadian Bukit Asam Power (HBAP) as an Independent Power Procedure (IPP) which is a consortium of PT Bukit Asam (Persero) Tbk and China Huadian Hongkong Company Ltd.
In this PPA amendment there are some changes from the original plan. Electricity from South Sumatera Mine Mouth Power Plant-8 which originally will be flowed to Java using High Voltage Direct Current (HVDC), now flowed to Sumatra grid using 500 kV extra high voltage transmission line. This change because the electricity demand in Java is considered sufficient, so that electricity from South Sumatera Mine Mouth Power Plant-8 is diverted for Sumatera electricity needs.
Included in the change, HBAP will also build a transmission line from South Sumatera Mine Mouth Power Plant-8 to PLN main substation in Muara Enim as far as 45 km. The addition of this transmission line also increased the total investment to almost reach US $ 1.7 billion.
In addition there are changes from the previous transmission to Java into Sumatra, the technology will be used South Sumatera Mine Mouth Power Plant-8 was changed. Previously, the technology that is planned to be used is sub critical which then turned into a super critical so that it becomes more efficient and environmentally friendly.
With this signing, the construction of South Sumatera Mine Mouth Power Plant-8 is expected to start in mid 2018, with construction period of 42 months for unit I and 45 months for unit II. Thus, it is expected to reach Commercial Operation Date (COD) in 2021 for unit I, then in 2022 for unit II.
