China to build power plant

JAKARTA: Chinese investors are planning to build a coal-fired power plant in Musi Banyuasin regency, South Sumatra, at a cost of US$200 million. Musi Banyuasin Regent Alex Noerdin said in Jakarta the power plant project would be completed in three years.

The agreement was inked in Hong Kong on Nov. 7 between Chinese investors grouped in a consortium called Gohuwa and PT Petro Muba, a company that belongs to the Musi Banyuasin regental government.

The power plant has a power capacity 2x100 megawatts, said Alex.

Under the agreement, Gohuwa would finance the technology, power plant construction and the research, while Petro Muba would be responsible for preparing land for the power plant, arranging the construction permit and supplying coal. Building more power plants is seen as necessary as only 46 percent of the regency's area is covered by power grid networks. -- Antara