Gorontalo power plant to start construction

After being delayed for several months due to a problem in land acquisition, the construction of the Molotabu coal fired power plant in Bone Bolango regency, Gorontalo province is expected to start soon, Bisnis Indonesia reported.

Independent power producer (IPP) PT Tenaga Listrik Gorontalo (TLG) signed in Jakarta on Monday a contract to build the power plant with the consortium of PT Rekadaya Elektrika and Shandong Machinery I&E of China.

Speaking to reporters following the signing of the agreement, TLG?s President Director Sandiaga Uno said that the construction of the power plant, which would have a capacity of 2 x 10 megawatt, would require investment of up to US$20 million.

About 70 percent of the total funds would come from local Bank Bukopin?s loans, and the remaining from the company?s own funds, he said

The power plant would need between 16,000 tons and 20,000 tons of coal a month, he said. Adding that the coal supply would come from East Kalimantan coal miner PT Pesona Khatulistiwa Nusantara.

Sandiaga said he was optimistic that the construction of the plant could be completed in 24 months and expected to start operation in 2010. (*)