Investment for Central Java Power Plant to Soar

The investment required to build a coal-fired Central Java power plant with a capacity of up to 2,000 megawatts is estimated to soar to more than the initially calculated cost of $3.2 billion, the head at one of the companies building the plant said last week.

Boy Garibaldi Thohir, president director of coal miner Adaro Energy — part of the consortium, which in July 2011 won a contract to build, own and operate a power plant in Pemalang, Central Java — said the soaring investment was caused by rising costs for the engineering, procurement and construction work.

He added that the project was also being constrained by difficulties in land acquisition. Fifteen percent of the land needed has not yet been purchased due to the cost.

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Posted October 17, 2013 by repit in News

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