Group seeks to continue T. Jati A power project<\/p>\n
JAKARTA (JP): PT Tanjung Jati Power Company has asked the
\ngovernment to allow it to continue its US$1.66 billion Tanjung
\nJati A power project in Jepara, Central Jakarta, the company said
\nyesterday.<\/p>\n
Aburizal Bakrie, chairman of the Bakrie and Brothers Group --
\na member of the project's consortium -- suggested in a recent
\nletter to the government that the project be lifted from "under
\nreview" status and be allowed to continue.<\/p>\n
Government approval is needed to allow the consortium to get
\nforeign loan disbursements for the project.<\/p>\n
The coal-fired 1,320 MW power project is among six private
\npower projects which were put under review by the government as
\npart of a package of measures launched to cope with the current
\nmonetary crisis.<\/p>\n
The measures, which were announced last month, allowed ten
\nprivate power projects to continue, but postponed 13 other power
\nprojects.<\/p>\n
"We are optimistic that the project will be allowed to
\ncontinue because the project is needed by the public and is good
\nin light of its cheap price," Aburizal said on the sideline of
\nthe Asia Pacific Countertrade Association conference.<\/p>\n
Tanjung Jati A is 30 percent owned by Japan's Tomen Power, 30
\npercent by Britain's National Power, 20 percent by Bakrie Power
\nand 20 percent by Maharani Paramitra, controlled by President
\nSoeharto's daughter Siti Hediati Harijadi Prabowo.<\/p>\n
The consortium signed a power purchase agreement with state-
\nowned electricity company PLN last April.<\/p>\n
Under the agreement, PLN will buy power from Tanjung Jati A at
\n5.74 U.S. cents per kilowatt hour (kwh) starting from the
\nbeginning of its operation in 2001. Thus far it is the cheapest
\nprice offered by a private power company.<\/p>\n
Aburizal said while waiting for the government's new policy
\nregarding the project the consortium would continue to work on
\nthe project.<\/p>\n
"We decided to continue the project because we have completed
\nsome main stages of preparation, including making financial
\narrangements with foreign banks, several months ago," he said.<\/p>\n
"The banks are scheduled to close financing for the project by
\nJune next year," Aburizal said, refusing to give further details.<\/p>\n
According to the current ruling, a private power company which
\nhas signed a power purchase agreement with PLN has to conclude
\nenergy and construction contracts and financing arrangements in
\norder to be allowed to obtain foreign loan disbursements to
\ndevelop the project.<\/p>\n
Among other power companies which have asked for government
\napproval to continue their projects was Unocal Geothermal
\nIndonesia Ltd, a subsidiary of American Unocal Corp.<\/p>\n
Unocal had been licensed to develop two geothermal power
\nprojects: the $266 million Salak power project in West Java with
\na capacity of 165 MW and the $570 million Sarulla power project
\nin North Sumatra with a capacity of 220 MW.<\/p>\n
However, the government only allowed the Salak power project
\nto continue.<\/p>\n
The vice president and general manager of Unocal Geothermal of
\nIndonesia, Olin D. Whitescarver, recently said the company had
\nspent some $50 million of its equity capital to develop the
\nSarulla project.<\/p>\n
Whitescarver said he was optimistic that the government would
\ngive the go-ahead for the project to continue in the near future.
\n(jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/group-seeks-to-continue-t-jati-a-power-project-1447893297",
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"sponsor": "Okusi Associates",
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