PLN signs power deals with two private firms<\/p>\n
JAKARTA (JP): The state-owned electricity company, PLN, has
\nsigned two power purchase agreements with PT East Java Power, and
\nPT Makasar Power, and will build two natural gas-fired power
\nplants, with a combined capacity of 560 megawatts (MW).<\/p>\n
Speaking to reporters after signing the agreements, PLN's
\nPresident, Djiteng Marsoedi, said PT East Java Power would build
\na 500 MW combined-cycle power plant in Pasuruan, East Java, with
\na total investment of US$575 million.<\/p>\n
PT East Java Power is 50.1 percent owned by Enron Java Power
\nCorporation of the U.S., 25 percent by PT Pasuruan Power,
\ncontrolled by Bambang Trihatmodjo, the second son of President
\nSoeharto, and 24.9 percent by Prince Holdings Ltd. of Hong Kong.<\/p>\n
The Pasuruan power plant is the second power project partly
\nowned by Bambang Trihatmodjo, whose Company the Bimantara Group,
\nowns 15 percent in PT Jawa Power, the developer of the coal-fired
\n1,220 MW Paiton II station, in Probolinggo, East Java.<\/p>\n
Robert Baldwin, the chief of Enron Development Corp., said
\nEast Java Power would build the Pasuruan power plant in a 20-year
\noperation, operating and owning the scheme.<\/p>\n
\"We're now negotiating with the state-owned oil and gas
\ncompany, Pertamina, about using the gas supply from the Madura
\nsea,\" he said, adding the Pasuruan plant would come on stream in
\nJune, 2000.<\/p>\n
PT Makasar Power will build a 60 MW gas-fired diesel power
\nplant in Pare-pare, South Sulawesi, with a total investment of
\n$70 million.<\/p>\n
PT Makasar Power, which will build the power plant in a 20-
\nyear operation, again operating and owning the scheme, is a
\nconsortium of Wartsila Diesel Development of Finland, PT Putra
\nDharma Harmoteknik and Stowindo Power of Indonesia.<\/p>\n
Makasar Power's Managing Director, Ian C. Copeland, said the
\nPare-pare power plant was scheduled to start operation next
\nOctober.<\/p>\n
He said the power plant would initially use fuel oil, as it
\nhas yet to secure its natural gas supply from Sengkang, South
\nSulawesi. \"But it will eventually use gas,\" he said.<\/p>\n
Under yesterday's agreements, PLN will buy electricity from PT
\nEast Java Power for 5.76 U.S. cents per kilowatt hour (kwh), and
\nfrom PT Makasar Power for 6.09 U.S. cents per kwh.<\/p>\n
The East Java Power's price includes the transmission cost
\nfrom the power station to a nearby sub-station, while the
\nMakasar's price does not include the transmission cost.<\/p>\n
Djiteng said until now PLN had signed 21 power purchase
\nagreements with private firms, four of which were signed this
\nmonth alone.<\/p>\n
According to him, the 21 power projects will together have a
\ngeneration capacity of 7,482 MW, of which some 4,480 MW will be
\ngenerated by coal, 772 MW generated by gas, 60 MW by diesel oil
\nand 2,170 MW by geothermal steam.<\/p>\n
He said the 7,482 MW were part of the 45,000 MW generation
\ncapacity which the government had allotted to private power
\ngenerators.<\/p>\n
\"This is to anticipate the rising demand for electricity in
\nthe 2000s,\" he said recently. He estimates electricity demand to
\ngrow by 20 percent a year.<\/p>\n
PLN itself will increase its generation capacity by 3,000 MW,
\nto 15,000 MW, during the next five years.<\/p>\n
According to Djiteng, PLN expects to sign more power-purchase
\nagreements with private firms before the end of this year.<\/p>\n
Meanwhile, PT Consolidated Electric Power Asia (Cepa)
\nIndonesia has started the construction of its 1,300 MW Tanjung
\nJati B power plant in Jepara, Central Java, yesterday.<\/p>\n
The power project, with a total investment of US$1.77 billion,
\nhad previously been stalled over disputes about the site.<\/p>\n
But the government has finally decided to allow the private
\ncompany to continue construction, with some amendments in its
\nagreement with PLN. (bnt\/har)<\/p>",
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