Govt plans to tender new power projects<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government plans to open new tenders for the construction
\nof new power generators in a bid to help meet soaring demand for
\npower and to avoid a power crisis in the future, a senior
\nofficial says.<\/p>\n
"We are still assessing the demand. When it is completed, we
\nwill start the tender," Ministry of Energy and Mineral Resources
\nelectricity and energy application director general Luluk
\nSumiarso was quoted by detik.com as saying on Wednesday.<\/p>\n
He said that the process should be completed as soon as
\npossible considering the rising power demand in the country.<\/p>\n
The demand, particularly in Java and Bali, is creating fears
\nof a looming power crisis, especially as the construction of new
\npower generators by private investors was halted following the
\n1997 financial crisis.<\/p>\n
At the time the government was forced to terminate power
\npurchase contracts with 27 independent power producers (IPPs) to
\nstop state-electricity company PLN, which was supposed to buy the
\npower produced by the private investors, from going bankrupt.<\/p>\n
After years of negotiations, the government finally reached
\nagreement with 26 IPPs on new contracts. Some of the IPPs agreed
\nto sell their power at lower prices, while others agreed to sell
\nthe projects to PLN.<\/p>\n
The 26 IPPs have a combined power generation capacity of
\n10,615 MW.<\/p>\n
Luluk said that the agreement with the 26 IPPs should help
\nimprove the investment climate in the country's power sector,
\nwhich in turn should help the government entice investors for the
\nplanned new tender.<\/p>\n
Luluk also said the government would invite the private sector
\nto cooperate in the development of power generators acquired from
\nfour IPPs.<\/p>\n
The four power plants are the Dieng power plant (Central
\nJava), Patuha (West Java), Sarulla (North Sumatra) and Cibuni
\n(West Java).<\/p>\n
However, he did not provide details of what form the
\npartnership would take.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-plans-to-tender-new-power-projects-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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