Construction of PLTU Cirebon 2 scheduled next year

By Hiski Darmayana

The construction of the second unit of PLTU Cirebon coal fired power plant in Cirebon regency, West Java is expected to start next year.

At present, PT Cirebon Electric Power (CEP), the Independent Power Producer (IPP) which owns the project, is in intensive talks with state owned electricity firm PT Perusahaan Listrik Negara (PLN) on the terms and conditions of Power Purchasing Agreement (PPA).

?We hope the talks with PLN can be completed soon so that we can start construction next year,? CEP Director Heru Dewanto told Petromindo.com on Tuesday.

He said the project will require an investment of US$2 billion, 75 percent of which will b covered with a loan from the Japan Bank for International Cooperation (JBIC) and 25 percent with internal resources.

The PLTU Cirebon Unit 2 is designed with the capacity of 1,000 MW, which will bring the total capacity of the power plant to 1,600 MW. The first unit which has a capacity of 600 Mw started operation last year.

Editing by Johannes Simbolon