Completion of 10,000 MW power projects behind schedule: Minister

The completion of all power projects being built under the Phase One 10,000-MW power plant development program will be delayed for at least a year to 2013 from the original schedule of 2010-2011 due to financial difficulties.

Energy and Mineral Resources Minister Darwin Zahedy Saleh said in Jakarta on Friday state owned electricity company PT Perusahaan Listrik Negara (PLN) could only complete 48 percent of the projects next year and another 27 percent in 2011.

?We hope 50 percent of the power projects could be completed in the middle of next year,? he added.

The power plants are being built in 10 locations in Java with total capacity of 6,900 MW and in 30 locations outside Java with total capacity of 1,892 MW. The total cost for the construction of the power plants is estimated to reach US$8 billion.

In October, PLN said that it would need additional funds of up to Rp 4 trillion (US$= Rp 9,400) to finance two new power plants included in the Phase One 10,000-(MW) crash program.

The two plants, each with a capacity of 2x200 MW, are located in Riau and East Kalimantan, PLN's President Director Fahmi Mochtar said in Oct. 29, 2009.

Aside from the Rp 4 trillion for the two power plants, PLN needs another $500 million and Rp 2 trillion for the development of five other power plants under the 10,000 MW program.

The five are in Tanjung AwarAwar ($372 million and Rp 1.1 trillion); Balai Karimun ($7 million and Rp 71 billion); Bangkalis ($8 million and Rp 132 billion); Riau ($9 million and Rp 111 billion) and Pant Baru ($62 million and Rp 300 billion). (*)