J-Power, Itochu Said to Delay $4 Billion Indonesian Plant

On Oct. 6 last year, the group said the 2,000-megawatt coal-fired plant, one of Asia’s biggest, would start generating electricity in Central Java in late 2016. The delay is a set back for Indonesia’s government, which laid out plans to boost power capacity to meet rising demand in Southeast Asia’s biggest economy.

The companies are seeking about $3 billion, or 75 percent of the project costs, from banks including Sumitomo Mitsui Banking Corp. and the state-run Japan Bank for International Cooperation, said the people.

The financing has been held up because of an environment assessment and negotiations with local residents to acquire land, Seigo Mizunuma, an executive director of Electric Power Development or J-Power, said in a speech at a seminar on Oct. 9. He didn’t give details.

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Posted October 12, 2012 by repit in News

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