HK company to construct US$2 billion power plant<\/p>\n
JAKARTA (JP): The state-owned electricity company PT
\nPerusahaan Listrik Negara (PLN) yesterday awarded a contract to
\nHong Kong-based Consolidated Electric Power Asia (CEPA) Ltd. for
\nthe construction of a US$2 billion power plant in Tanjung Jati,
\nJepara, Central Java.<\/p>\n
Through its wholly owned subsidiary, PT Consolidated Electric
\nPower Asia Indonesia, CEPA will construct two coal-fired power
\ngeneration units with a combined capacity of 1,320 megawatts
\nunder a build, operate and own scheme.<\/p>\n
CEPA is an affiliate of the Hong Kong-based Hopewell Holdings
\nLtd.<\/p>\n
Yesterday's deal was signed here by PLN's president, Zuhal,
\nCEPA's chairman, Gordon Ying Sheung Wu, and CEPA's managing
\ndirector and chief executive officer, Stewart W.G. Elliott, who
\nalso represented Hopewell Holdings.<\/p>\n
Wu told reporters that around US$1.6 billion of the $2 billion
\nneeded for the project will be financed with offshore loans,
\nwhile the remaining 400 million will be financed with CEPA's
\nequity.<\/p>\n
He said that his company, which has built power plants in
\nChina, Thailand and the Philippines, has received commitments
\nfrom the U.S. Export Import Bank and Japan's Export Import Bank
\nfor providing loans of some $1 billion for the project.<\/p>\n
Some commercial banks, including Citibank of the United
\nStates, Industrial Bank of Japan, Sakura Bank of Japan, Fuji Bank
\nof Japan and HongKong Shanghai Bank, will provide the remaining
\n$600 million.<\/p>\n
Purchase<\/p>\n
Yesterday's agreement also allows CEPA to sell its electricity
\nto PLN for 30 years. During the first six years of operation,
\nCEPA will sell its electricity at 7.665 U.S. cents per kilowatt
\nhour (kWh), in the next six years at 7.388 cents and in the
\nremaining 18 years at 5.988 cents.<\/p>\n
Ermansyah Jamin, the head of Indonesia's negotiating team for
\nthe project, said that PLN will pay for CEPA's electricity in
\nrupiah.<\/p>\n
Jamin, who is also an expert assistant to the Minister of
\nMines and Energy on electricity affairs, said the plant is
\nscheduled to start operation in 1998.<\/p>\n
PLN expects that the Tanjung Jati power station will
\nultimately have a total capacity of 4,000 megawatts.<\/p>\n
Wu said that even though the Indonesian government allows
\nforeign investors to control 100 percent of equity in large-scale
\nprojects under its new deregulatory measures, CEPA is inviting
\ndomestic companies to take part in the project's ownership.<\/p>\n
\"We are now negotiating with PT Pembangunan Perumahan to take
\npart in the project. We expect there will be more local companies
\njoining us,\" Wu said.<\/p>\n
Pembangunan Perumahan is owned by PT Pembangunan Jaya, a
\ncompany controlled by businessman Ciputra and the Jakarta
\nmunicipal administration.<\/p>\n
Zuhal said that CEPA is the fifth private company to build a
\nmajor power project in the country.<\/p>\n
PLN has thus far awarded a contract to PT Paiton Energy
\nCompany, a consortium of Indonesian, Japanese and American firms,
\nto establish a 1,230 MW coal-fired power generation plant in
\nPaiton, East Java, a consortium of Asea Brown Bovery (ABB) of
\nSwitzerland and Japan's Marubeni, for a 982-MW combined-cycle
\npower plant at Muara Tawar in West Java, a consortium of Japan's
\nSumitomo and General Electric of the United States for a 521-MW
\none-cycle power plant at Tambak Lorok in Central Java and a
\nconsortium of Japan's Mitsubishi and German Siemens for a 868-MW
\ncombined-cycle power station in Grati in East Java. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hk-company-to-construct-us2-billion-power-plant-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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