Electricity from Cilacap power plant to be sold at 4.57 cent per KwH

President director of PT Pembangkit Jawa Bali (PJB), Samiudin, said that electricity to be produced by the Cilacap steam power plant would be sold to state owned electricity company PLN at 4.57 U.S. cent, Investor Daily reported on Tuesday.

"According to existing power purchasing agreement, the selling price to PLN has been fixed at 4.57 U.S cent," he was quoted as saying. Samiudin said that he was optimistic that the new power plant could be operated by the end of 2006, or two months ahead of the initial schedule.

He said that the construction of the steam power plant which would have a capacity to produce power supply of about 1,200 MW, had been 60 percent completed as of February, this year.

The total cost of the new power plant is expected to reach US$562 million. About US$510 million of the total funds will be used for engineering, procurement and construction. The remaining US$52 million will be used as working capital.

The Cilacap power plant is operated by PT Sumber Segara Primadaya, a joint venture between PT Sumber Energi Sakti Prima (51 percent) and PLN's subsidiary PJB (49 percent).

PLN has recently asked the operator to speed up the construction of the Cilacap power plant in a bid to cope with the sharp increase in the power supply in Java and Bali.(*)