Statkraft signs RI deal

Statkraft signs RI deal

OSLO (Reuter): Norway's state power generator Statkraft AS
said yesterday it had signed a letter of intent with Indonesian
state power company PT PLN (Persero) on the joint development of
Merangin 2, a hydroelectric power station in Jambi province in
Sumatra.

Total costs for the plant were estimated at 3.5 billion
crowns, according to a Statkraft statement to the Oslo bourse.

The project includes tunnels and a mountain power station with
a capacity to produce 1.5 terawatt hours per year.

Commercial operations were expected to begin in 2003.