In addition to the well-known public health, environmental, and climate impacts of coal plants, developing the coal plant has blocked three tributaries which has flooded community rubber plantations and farms. It was reported that the pre-construction of Sumsel-1 power plant started in 2016 by freeing the land in two villages covering 113 hectares, including about 84 hectares (80%) in Tanjung Menang Village and the remaining 20% in Air Cekdam Village. Local residents were unwilling to sell their land and also complained about the land compensation issues. It was reported that the construction of Sumsel-1 power plant has encountered social and labor conflicts over the past years. (SDEPCI, a subsidiary of state-owned State Power Investment Corporation), while SDEPCI reported that it would be the sole contractor of the project which started official construction in September 2020.– (HBC, a subsidiary of state-owned Harbin Electric Corporation) and Shandong Electric Power Engineering Consulting Institute Corp., Ltd. The project is allegedly constructed by Guangdong Power Engineering Co Ltd (a subsidiary of Energy China), with the involvement of Harbin Boiler Company Ltd. In November 2015, the consortium of PT SGLPI won the BOOT contract (while it was also reported that the consortium was negotiating with PLN for a 30-year contract), with PT LPE supplying the coal required for the project from its open-pit coal mine located 3.5km away in the southeast the Sumsel-1 CFPP and water supply from the Lamatang River 5.3km away in the north of the project area.,, The project is part of the 35,000MW Electricity Program of Indonesia and the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI)., When a group of 260 organizations from across the world sent a letter to the Chinese minister of Ministry of Commerce to call for “high quality” construction on the Belt and Road, Sumsel-1 was mentioned in the list of projects in the letter.
PLN issued an open request for qualification (RFQ) for Sumsel-1 project in April 2014 to look for developers to finance, construct and operate the Sumsel-1 power plant on a build-own-operate-transfer (BOOT) basis with a long-term power purchase agreement of up to 25 years.
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