Govt to give incentives to investors joining power projects

The government plans to issue special incentives to investors taking part in the government's ongoing crash program to provide additional power supply of about 1,000 megawatt in the country, Kompas reported Thursday.

Yogo Pratomo, the head of the coordinating for the crash program, said in Jakarta Wednesday that investors using more local components in their power plants would be given a priority to get the incentives.

He said that in addition to incentives, the government would also guarantee the certainty of the prices of the land to be used for the projects. He said that the incentives would be offered to investors, which have passed the prequalification in the construction of 10 coal-fired power plants to be built as part of the fast-track power program.

As many as 43 local and foreign companies have passed the pre qualification to take part in the tender for the construction of 10 coal-fired power plants. Of the number, 19 will join the tender for the construction of coal-fired power plants with a capacity of between 300 MW and 400 MW were Chinese companies and the other 24 companies will join the tender for the construction of coal-fired power plants with a capacity of between 600 MW and 700 MW.

Yogo, however, did not unveil what forms of incentives nor the criteria in the selection of companies to get the incentives. The tender would be announced in October so that the construction could be begun in early 2007. (*)