Govt to offer gas and power projects<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government will open bidding for a power plant and two gas
\npipeline projects in May that could be worth more than US$1.1
\nbillion, top officials say.<\/p>\n
State power firm PT Perusahaan Listrik Negara (PLN) will begin
\nthe pre-qualification procedure for a tender to build a 450-
\nmegawatt coal-fired power plant located in Cilegon, Banten, on
\nMay 25, the firm's financial director Parno Isworo said on
\nTuesday.<\/p>\n
\"We expect power generation to start in 2009 or 2010,\" he said
\non the sidelines of a presentation for potential investors.<\/p>\n
Bidders interested in the project, estimated to be worth $500
\nmillion, will have to prove they have experience in developing
\nprivate power projects and sufficient funds to cover construction
\ncosts.<\/p>\n
The tender winner will construct the plant as well as sell the
\npower generated to PLN, which aims to sign the power purchase
\nagreement by June 21 next year.<\/p>\n
The contract will be the first to be conducted with
\nindependent power producers since the monetary crisis seven years
\nago.<\/p>\n
Power shortages have been increasingly serious over the past
\nfew years with demand continuing to grow but supply remaining
\nstagnant due to lack of investment.<\/p>\n
Bloomberg quoted PLN president director Eddie Widiono as
\nsaying that PLN needs $16 billion over 16 years to help avoid
\nshortages. More than half of the required investment is expected
\nto come from foreign investors.<\/p>\n
The government will also open bidding for two pipeline
\nprojects, namely a 390-kilometer-long pipeline from Gresik in
\nEast Java to Semarang in Central Java and a 290-kilometer-long
\none from Semarang to Cirebon in West Java.<\/p>\n
Each of the pipelines will carry between 350 million standard
\ncubic feet of gas per day. Combined, the projects are estimated
\nto be worth up to Rp 6 trillion ($625 million).<\/p>\n
The pipelines are expected to channel gas to fulfill demand in
\nJava, where gas is used by industries as well as households, from
\nnewly developed gas fields operated by Santos, offshore Madura
\n-- an island off East Java -- ExxonMobil on Madura and Amerada
\nHess in Ujung Pangkah in the province.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-offer-gas-and-power-projects-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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