Indonesian Political, Business & Finance News

New power plant for N. Sulawesi

| Source: JP

New power plant for N. Sulawesi

JAKARTA (JP): PT Wahana Komunikatama will invest US$400
million in developing a 150 megawatt (MW) geothermal power plant
in Tompaso, Minahasa, North Sulawesi.

"The geothermal power plant is scheduled to come on stream in
2003," said company president Kemal Idris Monday in the North
Sulawesi's capital of Manado at a meeting with Governor E.E.
Mangindaan.

Antara news service quoted Kemal as saying that Tompaso had a
geothermal resources supply of 235 MW but the company would only
generate 150 MW in the first phase.

He said state-owned electricity company PLN had permitted the
company to exploit geothermal resources but Wahana and PLN had
yet to conclude negotiations for power purchase agreements.

Mangindaan welcome the planned investment, saying the project
would speed up the development of the province's industry and
tourism.

The governor said the province had been in short supply of
power over the past two years and he projected the province's
demand for power to increase to 180 MW in 2000.

He said the province was developing some projects -- including
the Sam Ratulangi airport, the Bitung seaport, a coconut
processing factory, a cement factory and several star-rated
hotels -- which would need a lot of power for operation.

The governor said some investors were developing a geothermal
power plant in Lahendong with a generation capacity of 40 MW
using French technology, but people were already pessimistic
about the project because it was still under construction after
many years.

Other investors were developing a coal-fired power plant with
a generation capacity of 20 MW in Amurang, Minahasa, "Still the
power plant alone won't be able to supply the province by 2000,"
Mangindaan said.

The government is promoting geothermal steam development as an
alternative energy source because it is environmentally
friendlier than other sources.

Official data say Indonesia has geothermal resources supplies
of over 20,000 MW -- making it one of the biggest in the world --
but only 0.23 percent of this has been developed (jsk)

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