Sibolga-A Coal-Fired Power Plant

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The 200-MW (2x100-MW), US$272 million, Sibolga-A Coal-Fired Power Plant was to be developed by PT Tenaga Listrik Sibolga, a consortium of Risjadson Group and three local firms: PT Putradharma Harmotehnik, PT Transmega Ekacipta Corporation, and Soebiakto Prawira Soebroto. The local firms involved in this project were also developing the Amurang Coal-Fired Power Plant at Amurang, North Sulawesi. The Sibolga-A project was to be developed through a 30-year BOT. Construction commenced in January 1997 and commercial operations were scheduled to start by late 1999. This project was distinct from the proposed Sibolga-B (also located in Sibolga, North Sumatra) that was being developed by Tokyo Electric Power Co, Mistubishi, and Mitsui. The Sibolga-A project was being financed from a mixture of US$450 million in syndicated loans and equity capital. The loan agreements were signed in November 1996, but construction was not completed due to the financial crisis. Daelim Engineering of South Korea was the project contractor, and IVO Generation Service Ltd of Finland won a 10-year, US$90 million contract to provide O&M services for both the Sibolga and Amurang plants. PT Tenaga Listrik Sibolga signed a PPA of an undisclosed length of time with the national utility Perushaan Listrik Negara (PLN) to sell 80% of the power from the Sibolga-A plant. The government put on hold many of the independent power producer (IPP) projects in late 1997 as part of the retrenchment program to cope with the economic crisis. PLN, which was financially troubled by the crisis, asked to renegotiate the PPAs, especially with regards the price. In 2003, 14 of the 26 IPPs, including Sibolga A, agreed to continue their projects under a new pricing scheme, while seven agreed to terminate the PPAs. Following the signing of the amended PPA on Feb. 1, 2003, PT Tenaga Listrik Sibolga was expected to raise finance to complete the construction of the plant; however, it failed to do so. In January 2007, PT Tenaga Listrik Sibolga and PLN signed a new PPA with a new pricing arrangment, after which the project company was expected to raise finance to fund construction. As of July 2008, the project company was looking for financing.