Bengkalis firm urges PLN to sign PPA
Friday, March 14 2014 - 03:53 AM WIB
Local regency administration owned company PT Bumi Laksamana Jaya (BLJ) through its subsidiary PT Riau Energi Tiga (RET) has completed 55 percent of the targeted works for the construction of a 50 MW combined-cycle gas and steam power plant in Balai Pungut Village, Pinggir Sub District, Bengkalis Regency, in Riau Province.
To speed up the construction of the project, seen crucial to help resolve the lingering power shortage in the province, BLJ President Director Yusrizal Andavani urged state-owned electricity firm PLN to quickly sign the power purchase agreement (PPA), which is necessary for securing bank loans.
He said in a press statement received Friday that the consortium developing the project which includes RET, PT ZUG Industri, and PT Riau Investment Corp (PIR), has proposed a price of Rp 1,350 per Kwh for the electricity, which is lower than the average power purchase price of PT. Perusahaan Listrik Negara (PLN) in Riau at Rp 1,361 per Kwh.
Yusrizal, however, said that PLN was seeking for a much lower price Rp 787, a price level that would make the project to discourage banks from providing the necessary loans.
Elsewhere, he said that the project has already obtained the necessary construction permit.
Editing by Reiner Simanjuntak