S'pore Power, PLN tie up

S'pore Power, PLN tie up

SINGAPORE (Reuter): Singapore Power (SP), the newly formed state electricity and gas monopoly, and Indonesian power firm PT PLN have signed a memorandum of understanding on closer cooperation, SP said yesterday.

The agreement is in line with the commitment of both countries to forge closer technical and economic cooperation, SP said in a statement.

The deal recognizes the intent of the two firms to structure a formal strategic partnership for joint ventures.

"This partnership with PLN marks a positive step by Singapore Power in its regionalization thrust," SP said.

The first undertaking of this cooperation will be a feasibility study for the supply of electricity for the Riau Islands, including the Batam industrial zone.

SP took over the electricity and gas operations of the Public Utilities Board when it was corporatized on Oct. 1.

Two of its seven subsidiaries are designated vehicles for regional diversification.