Banko Tengah power plant

Banko Tengah power plant, which is sometimes referred to as the 'Banko Tengah mine-mouth power plant', is a proposed 2,400 megawatt (MW) coal-fired power plant in South Sumatra, Indonesia. The plant, which was proposed by was originally scheduled to be commissioned by the first quarter of 2011. In a 2009 investor presentation Bukit Asam stated that the negotiation of a Power Purchase Agreement (PPA) with PLN "is in process" and stated that the commissioning date would be 2013. In its 2009 annual report Bukit Asam states that the project was aimed at catering for demand in Java and Sumatra. However, the Power Purchase Agreement for the project has not been agreed to by PLN, the government owned power company. An October 2010 JP Morgan research report referred to the project as having stalled. The plant was proposed to be built adjoining the Tanjung Enim mine.

Background
In March 2005 there was a high level meeting between China Huadian Corporation (CHD) officials and the head of the state-run electricity company, PT PLN. The following month CHD signed a Memorandum of Understanding with the governor of South Sumatra, Mr.Syahrial Oesman, for the development of a 4X600MW mine mouth power station in South Sumatra. A few months later the formal Memorandum of Agreement was signed with the Indonesian President, Susilo Bambang Yudhoyono and Chinese vice premier Zeng Peiyan at a business luncheon. Signing the agreement were Mr. He Gong, the president of China Huadian Corporation, Mr. Eddie Widiono, the president director of Indonesian state-run electricity company PT PLN, Mr. Ismet Harmaini, president of Indonesian state-run coal company PTBA and Mr. Hendrik Tee, president of Indika. "This project is to be developed by 55% majority holding of China Huadian corporation," a CHD media release stated.

Mine
In 2010 the China Railway Group (CRG) was awarded a US$4.8bn contract to build and operate a 307km coal railway line from PT Bukit Asam (PTBA)'s Banko Tengah coal mine in South Sumatra to Srengseng in Lampung province, Indonesia. The contract includes US$1.3bn for the construction of the railway and US$3.5bn for operating and maintaining the railway over 20 years. The project, which is scheduled to be completed in 2014, is slated to transport 27 million tons of coal per year. Business Monitor International reports that "the contract was awarded to the CRG by PT Bukit Asam Transpacific Railway, a joint venture (JV) company formed of PT Transpacific Railway Infrastructure (80%), which is owned by Indonesian tycoon Prajogo Pangestu, and PTBA (10%). The final 10% stake is owned by a Chinese railway company, although it is unclear from press reports if this stake belongs to China Railway Group or China Railway Engineering Corporation."

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