PLN signs contract with Alstom consortium<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State electricity firm PT PLN has signed a contract with a
\nconsortium comprising Japanese, Indonesian and American firms for
\nthe provision of boilers for the Tarahan power project in South
\nSumatra.<\/p>\n
Under the contract signed on June 26, the consortium,
\ncomprising Alstom Power Inc. USA, Marubeni Corp., Japan and PT
\nAlstom Power Energy System Indonesia, will provide PLN with two
\ncirculating fluidized bed (CFB) boilers for both the Tarahan 3
\nand Tarahan 4 power plants.<\/p>\n
Both boilers are valued at US$118.264 million, according to
\nEko Sulianto, a director of PT Alstom Power Energy System
\nIndonesia.<\/p>\n
Both PT Alstom Power Energy System and Alstom Power Inc., USA,
\nare subsidiaries of French engineering giant Alstom. The former
\nhad a plant in Surabaya, which produces, among other things,
\nboilers.<\/p>\n
A CFB boiler is an environmentally friendly type of furnace
\nthat can use low-grade coal. This type of coal, which accounts
\nfor 60 percent of Indonesia's coal reserves, cannot be used in
\npower plants equipped with standard boilers.<\/p>\n
Eko told The Jakarta Post over the weekend that the signing of
\nthe contract had eased worries regarding the future of the
\nproject.<\/p>\n
The construction of the Tarahan 3 and 4 power pants was
\ninitially scheduled to start before the end of last year and to
\nbe completed by the end of 2006. Each of the power plants has a
\ncapacity of 100 megawatts and both are valued at US$350 million.<\/p>\n
However, PLN was forced to delay the construction work because
\nthe Japan Bank for International Cooperation (JBIC), as the
\nfinancier of the project, was unable to finish the evaluation of
\nthe tender results for the projects by the end of last year.<\/p>\n
The project is seen as crucial in view of the current power
\ncrisis in the region. Installed power generation capacity in
\nsouthern Sumatra currently stands at 580 MW with the demand at
\nabout the same amount. A power grid should have power reserves
\namounting to 30 percent of capacity.<\/p>\n
Eko said as a result of the delay in the construction of the
\nproject, the power plants would come into operation later than
\nthe initial schedule, that is, in 2007 for Tarahan 4 and 2008 for
\nTarahan 3.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-signs-contract-with-alstom-consortium-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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