Indonesia’s Adaro JV declares force majeure on Central Java power project
Mon Jul 7, 2014 10:58am GMT
JAKARTA, July 7 (Reuters) – Indonesian coal miner PT Adaro Energy Tbk said on Monday its joint venture firm had declared force majeure on the construction of a 2,000-megawatt coal-fired power plant in Central Java due to land acquisition problems.
PT Bhimasena Power Indonesia, a joint venture company set up by Adaro, Itochu Corporation and Electric Power Development Co Ltd, sent a force majeure notice on June 27 to its contractors and to the Indonesian state-owned electricity company.
Adaro, which holds a 34 percent stake in Bhimasena, said the force majeure has no impact on its own profitability.
The consortium has acquired more than 85 percent of the land necessary for the project and the permits, Adaro said in a stock exchange filing.
“However, due to the instability of the situation at the site, the acquisition of the remaining plots of land are beyond the reasonable ability of a private company, like BPI, to acquire and may be acquired only with government support,” Adaro said, without giving further details. (Reporting by Fathiyah Dahrul and Eveline Danubrata; Editing by Pravin Char)