Government will resume the construction of Aceh's power plant

The government has decided to resume the construction of the 86.4-MW hydropower plant in Krueng Peusangan in Aceh in a bid to cope with the acute shortage of the power supply in the province, Bisnis Indonesia reported.

Bambang Sudiono, the head of PLN's operation unit for North Sumatera and Aceh said in Medan last week the resumption of the construction of the Peusangan power plant, which had been delayed for two years was, was made by the National Development Planning Board (Bappenas) during its meeting on Aug 29.

He said that the construction of the plant would cost about US$197 million or equivalent to Rp 1.44 trillion. The Japanese Bank of International Cooperation and Asian Development Bank would provide $85 million and $57 million respectively in soft loans while the government will provide the remaining $45 million.

The funds would be used to construct the main civil works of the powerhouse, turbine and auxiliary equipment, generator, electrical facilities and transmission line, Bambang said, adding that the contractors of the project would include Taise Corporation, Mada Corporation, both of Japan and local company PT Wijaya Karya.

The construction of the Peusangan power plant was started in 1995 but it was delayed due to the country's economic crisis and prolonged conflicts between the government's security forces and the pro-independence movement in the province. (*)