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Indonesian coal plant faces further delay

World Coal,

Electric Power Development Co., Itochu Corp. and PT Adaro Energy have further delayed the schedule for securing financing for their US$ 4 billion coal-fired power plant in Indonesia.

The companies announced that they have pushed back the deadline by a year to October 2014 as a result of facing delays acquiring land. The group has already acquired more than 80% of the land needed for the 2000 MW power plant in Batang, Central Java, according to a spokesman for Electric Power Development.

The group has already postponed construction of the new power plant, which was initially schedules to start in October 2012, amid environmental assessments and opposition from locals.

Further delays will be a setback for Indonesia’s plans to obtain more of its domestic power from lower quality coal trades.

The plant in Central Java, which would be Indonesia’s largest independent electricity supplier, is part of Prime Minister Shinzo Abe’s strategy to increase exports of technology to improve the efficiency of coal power.

Adapted from press release by Katie Woodward

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