Praba Group subsidiary PT Praba Indopersada and Gezhouba Group have joined forces to construct state-owned PLN’s 100MW coal-fired power plant in West Kalimantan, Indonesia.

Praba will carry out construction works, while Gezhouba will be responsible for mechanical and electrical works for the $172m project, partly financed by loans from Chinese banks.

Feasibility studies for PLN’s plant have been completed while work on the first phase will begin in June and the second phase will begin in September this year.

Gezhouba and Praba signed a memorandum of understanding along with other representatives of the Chinese and Indonesian Governments and firms for the project.

The plant is scheduled to commence operations in 2014, reports the Jakarta Post.