PLN opens bidding for Muara Tawar plant
PLN opens bidding for Muara Tawar plant
A'an Suryana, The Jakarta Post, Jakarta
State electricity company PT PLN opened bidding on Friday for
the construction of a US$240 million power plant in Bekasi, West
Java, which would ensure the supply of electricity to the Java-
Bali power grid.
"There are four bidders who have expressed interest in the
project. We invite more to take part," PLN's finance director
Parno Isworo told The Jakarta Post. He refused to name the four
bidders.
He said PLN expected the bidding process would be completed
soon and that construction of the power plant could be started
before the middle of the year.
Construction is expected to be completed within 22 months, he
said.
The Muara Tawar open cycle gas turbine power plant, located
about 70 kilometers east of Jakarta, will have six power units,
each with the power generation capacity of between 100 and 150
megawatts.
PLN will finance the construction of the wholly-owned project
with loans raised from domestic banks, bond issuance earnings and
its own capital.
To finance the project, PLN has issued Rp 3.1 trillion worth
of bonds, from which PLN received Rp 2.5 trillion, Parno said.
The power plant will first use diesel as feedstock, but the
company will gradually shift to gas, Parno said.
"The source of the gas is not definite yet," he said.
Several gas firms are competing to enter the West Java and
Banten markets, citing PLN and industrial firms in the area as
potential buyers.
State-owned gas distribution company PT PGN plans to build a
giant pipeline to supply natural gas from South Sumatra to
surrounding areas.
Anglo-American energy giant BP PLC and partners are also
interested in supplying the areas with liquefied natural gas
(LNG) from the Tangguh LNG plant in Papua.
The construction of the Muara Tawar power plant is part of
PLN's efforts to meet the growing demand for electricity in
Indonesia, but Java and Bali in particular. Without new
investments in the generation sector, it is feared that Java and
Bali could face a power crisis in the next several years.
The current capacity of the Java-Bali power grid is 18,000 MW,
while its peak load stands at 13,700 MW. The demand for power
grows by 8 percent annually. For a secure operation, about 30
percent of the capacity should be on reserve.
Gas has been tipped as the most ideal fuel for power plants,
as it is environmentally friendly and relatively cheap.
PLN has said Indonesia needs $28.5 billion in new investment
in power generation, transmission and distribution networks until
2010 to meet the country's growing demand for electricity.