Wed, 14 Mar 2007
From: The Jakarta Post
By The Jakarta Post, Jakarta
State-owned power firm PT Perusahaan Listrik Negara (PLN) is seeking a partnership with private investors to build a 250-megawatt (MW) hydro power plant in South Kalimantan.

"We are trying to figure out what kind of financial options are suitable for this project," PLN business unit oversight and civil engineering head Kabul Sutijono Sugeng told The Jakarta Post.

He said investment required for the project is expected to reach US$250 million and was confident the project would attract foreign and domestic investors.

PLN is embarking on developing hydro-generated power plants to reduce its dependence on more expensive fuel-fired plants.

On March 21 the company will sign seven power purchase agreements with seven local firms in relation to the development of seven mini hydro power projects in North Sumatra, Bengkulu, Jambi and Sulawesi with a total investment of US$98,000.

Last week the company also signed a power purchase agreement with Norwegian energy firm KF Gruppen for a 10-MW hydro power plant in South Sulawesi.

KF Gruppen is also planning to build a 133-MW hydro power plant in the same location with an investment of approximately US$300 million during the next three years.

According to PLN data, Indonesia has the potential to generate up to 75,000 MW of power, far higher than the 3,200 MW it already produces.



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