Paiton II power project underway<\/p>\n
JAKARTA (JP): PT Jawa Power, a consortium of Bimantara Citra,
\nSiemens AG of Germany and PowerGen of Britain, has started the
\nconstruction of the Paiton II coal-fired steam power plant in
\nProbolinggo, East Java.<\/p>\n
\"The Paiton II power plant, which will cost US$1.7 billion,
\nwill have a generation capacity of 1,220 megawatts (MW),\" Jawa
\nPower's president, Gerald H. Falgenhauer, told the press after a
\nground breaking ceremony led by East Java Governor Basofi
\nSudirman in Probolinggo on Friday.<\/p>\n
\"The construction of the first unit of the Paiton II, with a
\ncapacity of 610 MW, will be completed in 1999 and the second
\nunit, with a similar capacity, will be finalized a year later,\"
\nhe was quoted by Antara as saying.<\/p>\n
Siemens said recently that the power project will be financed
\nby loans from a consortium of international banks led by Credit
\nSuisse.<\/p>\n
Jawa Power is 50 percent owned by Siemens, 35 percent by
\nPowerGen and 15 percent by Bumipertiwi Tatapradipta, a subsidiary
\nof Bimantara Citra, which is controlled by Bambang Trihadmodjo,
\nthe second son of President Soeharto.<\/p>\n
Once construction of the plant is finished, Jawa Power will
\noperate the power plant for 30 years, after which it will be
\ntransferred to the state-owned electricity company PT PLN.<\/p>\n
On April 3, 1995, Jawa Power signed a power purchase agreement
\nwith PLN which requires the state company to buy the former's
\nelectricity under a 30-year contract at the price of 6.6 U.S.
\ncents per kilowatt hour (kWh).<\/p>\n
The Paiton II will get its coal from PT Kideco Jaya Agung and
\nPT Berau Coal in Kalimantan.<\/p>\n
The construction of the Paiton I steam power plant at the same
\narea, with a generating capacity of 1,230 MW, has been completed
\nby PLN and its electricity is transmitted through the Java-Bali
\ninter-connected networks. (13)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/paiton-ii-power-project-underway-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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