ADB plans to fund power purchase deal with Malaysian firm

The Asian Development Bank has expressed its interest to fund state-owned electricity PT Perusahaan Listrik Negara's (PLN) plan to purchase electricity from Sarawak of Malaysia for consumers in West Kalimantan, Koran Tempo newspaper reported in its Thursday edition.

?We welcome ADB if it helps us for the continuation of this project,? PLN president director Eddie Widiono in Jakarta on Wednesday.

Eddie declined to disclose the amount promised by ADB for the project.

PLN will buy power from Sarawak Electricity Supply Corporation (SESCO). Serawak is located close to West Kalimantan Province.

?In preliminary talks, SESCO proposed a price of 4 U.S. cents per kilowatt-hour for its power,? Eddy said, adding that the companies will meet again for formal negotiation.

According to the plan, supplies from SESCO will add 30-40 MW power capacity to the province beginning 2008. PLN is planning to build 200-300 km power cable linking both areas, which will need US$10 million. (*)