Construction of Aceh power plant faces uncertainty

The construction of a hydro power plant in Peusangan, Aceh which is estimated to cost some US$225 million is facing uncertainty after its Japanese constructor pulled out from the project due to security reason, Bisnis Indonesia reported on Tuesday.

Sulaiman Daud, the head of the branch office of state Electricity Company PLN in Lhokseumawe, said the construction of the hydro power plant had been delayed since 1996 and there was no indication when the construc1tion works would be continued.

"Most of Aceh people want the construction of the power plant to be resumed in order to help cope with the shortage of the power supply in the area,? he added

According to Daud, the withdrawal of the Japanese constructor has caused a delay in the disbursement of the US$225 million financial assistance that had been committed by Japan Bank International Cooperation (JBIC) to develop the power project.

He appealed the government to find new foreign investors to resume the project. ?Local investors could be also involved in less fundamental works,? he added. He said if the power project was continued the power crisis in the province could be resolved within the next three years. (*)