Bangka Power Plant

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PT Bangka Manunggal Power started to develop the Bangka Power Plant, a (2 X 12 MW) coal-fired power plant in 2007. The plant was to supply electricity to the state-owned electrical utility, PT PLN, under a 25-year power purchase agreement (PPA). The greenfield power plant was developed on a build, own and operate basis in Airanyir village, Merawang, Bangka-Belitung province. The power project was conceived as part of PT PLN’s efforts to overcome a power shortage in Bangka. The contract was awarded on March 21, 2007, when the project company and PT PLN signed a 25-year power purchase agreement (PPA). Information on the method of contract award was not publicly available. Under the terms of the PPA, PT PLN agreed to purchase electricity from the plant at a rate of US$0.049 (448.15 Indonesian Rupiah [IDR]) per KWh. The project company, PT Bangka Manunggal Power, was a wholly owned subsidiary of PT Truba Alam Manunggal Engineering Tbk., a private company. The project reached financial closure in May 2008 with the conclusion of a US$12.2 million (IDR 118 billion) loan agreement between the project company and Bank Bukopin. The total investment commitment for the 24 MW project was US$22.5 million (IDR 218.5 billion). PT Truba Jaya Engineering (TJE) an indirect wholly-owned subsidiary of PT Truba Alam Manunggal Engineering was appointed as the contractor for the Engineering, Procurement, and Construction (EPC) of the Bangka power plant. The sponsor expected the power plant to begin commercial operation in September 2009.