PLN, foreign firms to form joint ventures
PLN, foreign firms to form joint ventures
JAKARTA (JP): State-owned electricity company PT Perusahaan
Listrik Negara (PLN) plans to form joint ventures with seven
foreign companies to build several power plants, PT PLN's
President Djiteng Marsudi said yesterday.
"We are now negotiating with them. We hope to reach some deals
next year," Djiteng told The Jakarta Post after attending a
celebration marking PLN's 50th anniversary.
Djiteng said that his company had signed memorandums of
understanding with seven foreign companies, comprising Southern
Electricity International of the United States, Utrecht NA of the
Netherlands, China Light Power Ltd of Hong Kong, Electricite de
France, Hydro Electricity Quebec of Canada, National Power and
National Grid of Britain.
He said the power plant projects currently under negotiation
with the foreign companies are to be built in West and Central
Java, Sumatra and Kalimantan.
Djiteng said that PLN needs an average investment of Rp 10
trillion (US$4.4 billion) per year to build new power plants.
He said that new plants to be built by PLN in Java and Bali
will be operated by PLN's subsidiaries, PT Pembangkitan I and PT
Pembangkitan II.
PLN set up on Oct. 3 two subsidiaries, called PT Pembangkitan
I and PT Pembangkitan II with a total authorized capital of
US$9.88 billion, to manage its power plants in Java and Bali.
Djiteng said that PLN will never sell any shares of its
subsidiaries to foreign companies through direct placement.
"The subsidiaries will instead float their shares on
international and domestic stock exchanges in April 1997," he
said.
Asked about the prices of electricity from private generators,
Djiteng said that PLN will negotiate with the private companies
to obtain the lowest possible prices for consumers.
"We are ready to negotiate directly with private companies if
the government gives us full authority, but up to now we have not
been granted such authority," he said.
Earlier, the Director General of Electricity and Energy
Development of the Ministry of Mines and Energy Zuhal said that
the government has decided to give full authority to PT PLN to
negotiate the prices of electricity from private generators.
He said that the electricity prices, which used to be
negotiated by the government, will now be negotiated by PT PLN.
"It is high time to vest us with such authority because we
know all the technical details on electricity projects," Djiteng
added.
The government has so far approved power generation projects
for three private investors, comprising coal-fired power plants:
Paiton I with two units each producing 615 megawatts (MW), Paiton
II with two units each producing 610 MW, both in East Java, and
Tanjung Jati B with two units each producing 660 MW in Central
Java. (04)