Norway to develop hydropower project in Jambi province<\/p>\n
JAMBI (JP): A consortium of local administrations, Indonesia's
\nstate-owned electricity company PLN and Statkraft SF power-
\ngeneration company from Norway and local private company PT
\nBinatek Reka Energi has set up a joint venture to develop a 350-
\nmegawatt hydropower project in Jambi province on the southeastern
\npart of Sumatra island.<\/p>\n
The agreement for the joint venture company, called PT Kerinci
\nTirta Energi, was signed in Jambi on Sunday by Jambi Governor
\nZulkifli Nurdin, Kerinci Regent Fauzi Si'in, PLN director Eddie
\nWidiono, Statkraft SF chief representative in Jakarta Kjell Tore
\nLaroi and Binatek president Erwin Jahja.<\/p>\n
The joint venture company will initially have an authorized
\ncapital of US$500 million with the following shareholding
\ncomposition: Statkraft and PLN each with 35 percent, the Jambi
\nadministration and PT Binatex each with 15 percent.<\/p>\n
Also witnessing the signing of the agreement were Norwegian
\nAmbassador to Indonesia Sjur Torgersen and deputy chairman of the
\nNational Development Planning Agency for regional development
\nHerman Haeruman.<\/p>\n
\"This power station will be completed within seven years after
\nthe start of construction,\" Governor Zulkifli said.<\/p>\n
The hydropower project will be located at the mouth of the
\nMerangin river in Kerinci regency and will harness the water of
\nKerinci lake.<\/p>\n
Preparations for the Kerinci power project date back to 1995
\nwhen both the governments of Indonesia and Norway signed a
\nmemorandum of understanding on cooperation in energy development.<\/p>\n
This agreement was followed in mid-October, 1996 by a
\nmemorandum of understanding between PLN, Statkraft SF and PT
\nBinatek regarding the development of hydropower in Kerinci
\nregency under a foreign investment project.<\/p>\n
The executives of the joint venture company visited the
\nproject site on Sunday and briefed the local people on the
\nbenefit of the project for the local and national economy.<\/p>\n
Separately, Sverre Nygaard, a senior vice president at
\nStatkraft, was quoted by Reuters as saying in Oslo on Monday the
\nKerinci Hydropower Project would generate 1,450 gigawatt hours of
\nelectricity annually and could be ready by 2006.<\/p>\n
\"Before we can start the construction we certainly have to
\nensure that we will be able to finance the project in the
\ninternational market, and that will be the biggest hurdle,\"
\nNygaard said.<\/p>\n
An assessment of the plant's cost four years ago was set at
\nUS$550-$600 million, but a new study is required in the wake of
\nthe collapse of Indonesia's currency, the rupiah, in 1997-98.<\/p>\n
\"We expect the numbers to go down, and just changing the
\ndesign will enable us to reduce the costs,\" Nygaard said.<\/p>\n
\"In general, Asia is still a pretty challenging place to get
\nfinancing internationally, and Indonesia, in particular, is not
\nthe easiest place to finance a hydropower project like that,\" he
\nadded. (alx)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/norway-to-develop-hydropower-project-in-jambi-province-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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