Siemens, Bimantara win huge power contract<\/p>\n
JAKARTA (JP): The state electricity company PLN is scheduled
\nnext week to award a contract to a consortium of Siemens AG of
\nGermany and the Bimantara Group of Indonesia to establish two
\ncoal-fired power units worth US$2.1 billion in East Java.<\/p>\n
\"The contract for the establishment of the Paiton II power
\nproject will be signed in Hannover, Germany, in the presence of
\nPresident Soeharto,\" Minister of Mines and Energy I.B. Sudjana
\nsaid after meeting with Soeharto at the Bina Graha presidential
\noffice yesterday.<\/p>\n
The President, accompanied by First Lady Mrs. Tien Soeharto
\nand a number of ministers, will leave for Germany Friday evening
\nfor a six-day visit before finishing his two-week trip in
\nKazakhstan, Uzbekistan and Turkmenistan. In Germany, Soeharto
\nwill also open the Hannover Fair '95 with German President Roman
\nHerzog.<\/p>\n
Sudjana refused to name the other members of the consortium
\nbut said that a Japanese company would likely be involved.<\/p>\n
The chief representative of Siemens for Indonesia, Kurt W.
\nPfeiffer, told The Jakarta Post recently that Siemens and Power
\nGen. of Britain would likely join the Bimantara Group in
\nconstructing two coal-fired power generating units in Paiton,
\nEast Java, with a combined capacity of 1,200 megawatts (MW) at a
\ncost of US$2.1 billion.<\/p>\n
Paiton currently has two coal-fired power units, each with a
\ngeneration capacity of 400 MW, which were established by PLN. PT
\nPaiton Energy Company, a consortium of Indonesian, American and
\nJapanese companies, is now constructing two other units with a
\ncombined capacity of 1,230 MW at estimated total costs of US$2.5
\nbillion.<\/p>\n
Sudjana said the Siemens-Bimantara consortium will establish
\nits power units under a build-own-and-operate arrangement.<\/p>\n
Pricing<\/p>\n
\"The consortium will sell its electricity to PLN, which will
\nthen distribute it through its networks, at 6.09 U.S. cents per
\nkilowatt hour (kWh),\" the minister said.<\/p>\n
In comparison, the Paiton Energy Company, which is comprised
\nof the Dutch subsidiary of Mission Energy of the United States,
\nMitsui Co. Ltd. of Japan, General Electric Co. of the United
\nStates and PT Batu Hitam Perkasa of Indonesia, will sell its
\nelectricity to PLN at 8.56 U.S. cents per kWH for the first six
\nyears, at 8.41 cents for the next six-year period and 5.54 cents
\nfor the remaining 18 years.<\/p>\n
The power units to be constructed by the two consortiums are
\nexpected to start operating in 1998.<\/p>\n
Sudjana said that he also reported to President Soeharto about
\na plan of Freeport McMoRant Copper & Gold of the United States to
\njoin in the exploration and production of gold and copper in its
\nconcession in Irian Jaya.<\/p>\n
\"Freeport wants RTZ to provide an investment of about $450
\nmillion for the gold and copper exploration and production in
\nIrian Jaya,\" the minister said.<\/p>\n
Freeport is the majority shareholder of PT Freeport Indonesia,
\nthe company operating the Irian Jaya concession which is also
\nowned by the Indonesian government and PT Indocopper
\nInvestama. (riz)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/siemens-bimantara-win-huge-power-contract-1447893297",
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"sponsor": "Okusi Associates",
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