9,144 MW projects to be offered to private companies

The government will offer power projects with a combined capacity of 9,144 megawatt to private companies or independent power producers (IPPs) as part of the second fast track power program which will be launched next year, Republika daily reported on Tuesday.

?We are currently finalizing tender documents for the projects, hopefully, the tender can be launched in January, next year,? J. Purwono, the director general of electricity and energy at the Energy and Mineral Resources Ministry, said in Jakarta on Monday.

He said that the 9,144-MW power projects would be part of the 11,144 MW power plants to be built under the second stage of the fast track program. ?Unlike in the first track program, part of power plants to be built under the second fast track program will be offered to private companies,? he added.

The power projects to be built in the second fast track program will include the construction of coal-fired power plants with total capacity of 5,000 MW in Java and 2,644 MW outside Java; combined-cycle power plants with capacity of 825 MW in Java and 240 MW outside Java; geothermal power plants with capacity of 1,145 MW in Java and 990 MW outside Java; hydro-power plants with capacity of 300 MW, all outside Java.

Purwono said that the government was considering to offering a letter of support as a guarantee so that private companies interested in the projects to be built in second fast track program would not face difficulties in securing bank loans.

The government is currently completing the construction of dozens of power plants with total capacity of 10,000 MW being built under the first fast track program. Almost all of power plants will be owned and operated by state-owned electricity company PLN. (*)