Govt to open tender for Paiton expansion

Minister of energy and Mineral resources Purnomo Yusgiantoro said Friday that the government would open tender for an 800-MW power plant expansion in Paiton, East Java.

"The expansion of Paiton project will be done through tender," Purnomo told reporters.

The decision would end expansion talks between PT. Paiton Energy, the operator and owner of the Paiton I power plant with state electricity firm PLN.

Paiton Energy already has a 1,230- MW electricity plant in East Java and plans to expand it by around 800 MW at a cost of about $580 million.

Mitsui and Co. has an effective 49.7 percent stake and International Power Plc 31.3 percent of Paiton Energy, according to Moody's Investors Service, and General Electric 14 percent. Local Indonesian firm PT Batu Hitam Perkasa has five percent.(godang)