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.