Cirebon Electric Power expecting to sign PPA this month

By Cepi Setiadi

Independent Power Producer PT Cirebon Electric Power (PT CEP) is expecting to sign power purchase agreement (PPA) for it 1x1000 MW coal fired power plant project in Cirebon West Java this month.

President Director Heru Dewanto told Petromindo.com recently that the company is in a final negotiation with PT PLN.

"We are in the process of final negotiation for PPA. Agreement has been reached on tariff but there are few issues which are still unsettled, including Bank Indonesia's regulation regarding the use of rupiah. We expect to reach full agreement this month," he said.

After signing the PPA, the company will sign loan agreement, Heru said, adding the project needs about US$ 2 billion of investment.

Editing by Johannes Simbolon