CalEnergy's plant to go on

CalEnergy's plant to go on

OMAHA, Nebraska (Reuter): CalEnergy Co Inc said Wednesday its planned operations in Indonesia should not be affected by the possible government delay of private power projects due to Indonesian currency turmoil.

"We have confirmed with the Indonesian government that the government's proposed delay in the start-up dates of certain private power projects will not impact the construction schedule for our existing projects at Dieng, Patuha and Bali," Don O'Shei Jr, president of CalEnergy, Asia, said in a statement.

CalEnergy said well drilling has begun, construction work has started or financing has been arranged for its Dieng Units 1, 2 and 3, Patuha Units 1 and 2 and Bali Units 1 and 2.

"These Indonesian projects, as is the case with all our Asian projects, are paid in U.S. dollars and carry political risk insurance for our equity investment," David Sokol, CalEnergy's chairman and chief executive, said.