Susilo launches new power plants
The Jakarta Post, Jakarta/Palembang
President Susilo Bambang Yudhoyono inaugurated on Tuesday three gas-fired power plants in South Sumatra with a total investment of US$80.5 million and Rp 28.6 billion, in a bid to boost power supply in the region.
The three plants will provide a maximum power capacity of 154 megawatts and will help meet the province's 12 percent increase in power demand per year.
"Looking to the future, we expect this to help reduce the risk of a power crisis. Not just in South Sumatra, but also in neighboring provinces," the President said in a brief speech.
He was accompanied by, among others, Minister of Energy and Mineral Resources Purnomo Yusgiantoro, Coordinating Minister for the Economy Aburizal Bakrie, Minister of State Enterprises Sugiharto and president of state electricity firm PT PLN Edi Widyono.
The Borang gas-fired power plant, located in Banyu Asin district, will produce 100 megawatts of electricity, followed by the Indralaya II plant and the Talang Dukuh II plant with a maximum capacity of 40 megawatts and 14 megawatts, respectively.
Indralaya is located in Ogan Ilir district, while Talang Dukuh in Musi Banyu Asin district.
Borang, which will obtain its gas supply of 24,230 million cubic feet per day (mmcfd) from state oil and gas company PT Pertamina, is expected to start operating by 2005.
Gas supply for the two other plants, Indralaya II and Talang Dukuh II, will be provided by gas fields owned by oil and gas giant PT Medco Energi Internasional, with respective capacities of 9,840 mmcfd and 10,123 mmcfd. It was not clear when the two plants will start operation.
Purnomo said the projects were funded by loans from commercial banks and the state budget as well as loans from Asian Development Bank.
He did not elaborate.
"What's important is that these projects show that any power shortage in one province can be covered by other provinces," he said, adding that neighboring provinces such as Bengkulu, Jambi, West Sumatra and Lampung could benefit from the projects.
Meanwhile, the President also inaugurated a 275-kilovolt main power station and transmission network facility that links Lumbu Linggau in South Sumatra and Bankau in West Sumatra spanning a length of 390 km.
The project, which is part of the power interconnection system throughout Sumatra, is costing Rp 364.2 billion to build.
PLN said the system, which was initiated in 2003, would be completed in 2007.