Nuclear power plant study nears completion

Nuclear power plant study nears completion

JAKARTA (JP): The feasibility study on Indonesia's first
nuclear power plant is now nearing completion and the government
will soon accept proposals from potential contractors, the chief
of the National Atomic Agency (Batan) said yesterday.

Djali Ahimsa told reporters that two potential bidders have
already expressed interest: Westinghouse of the United States, in
cooperation with Japan's Mitsubishi, and Atomic Energy of Canada
Ltd.

Djali said his agency will be accepting bids in the near
future.

"I cannot say when the bidding will officially begin, but in
the near future, we will be accepting proposals," he said after
reporting on the latest progress on the study to President
Soeharto.

Djali drew criticism last week for suggesting that the
prequalification phase for the bid for the nuclear power plant
project would begin soon.

Environmental organizations said his remarks were premature,
given that the government has not publicly announced it will go
ahead with the construction of the nuclear power plant. They said
even President Soeharto has maintained that Indonesia would only
turn to nuclear energy as a last resort.

Djali said Batan will soon commission a third consultant to
give an overview of studies conducted by Japanese and Swiss
consultants which look at the feasibility of such a project, and
at the location, which is the Muria Peninsula in Central Java.

He added that if everything goes as planned, construction
could begin in 1998.

He reaffirmed that Muria was the most suitable location for
the project. "We're not looking at other sites."

He said the studies suggested that Indonesia build a nuclear
plant the size of 1,800 megawatt, comprised of three 600 MW units
or two 900 MW units.

Djali said Canadian interest in the project was indicated by
Prime Minister Jean Chretien during a meeting with President
Soeharto in Jakarta this month.

Westinghouse's offer stipulates for the power plant to be run
by the American company, with the Indonesian government owning a
minority stake in the project, he said.

The Canadian proposal insists on the government having some
stake in the project, he said.

He added that the government has not fully decided on the best
ownership structure, whether to own the power plant, or to allow
a private company to manage it entirely.

On the question of nuclear waste, Djali said Indonesia will
not be recycling the waste because it does not yet have the
capability to do so.

Instead, for the first 30 years the waste will be stored
within the nuclear plant's complex.

The waste would later be stored at one of the uninhabited
islands in the archipelago, he said, pointing out that about half
of the 17,000 islands in Indonesia are not inhabited. "We are
studying the islands ... Of course we will take into account
issues such as the geological and seismological aspects."

On the uranium supply, he said Indonesia would likely resort
to importing the nuclear plant's raw material in the beginning
because the world has an abundant supply at the moment.

Batan has identified small deposits of uranium totaling 10,000
tones in West Kalimantan but extracting them would be too costly
at present, given low uranium prices, he said.

Batan will also be exploring for uranium in Irian Jaya when
cost permits, he added. (anr)