Govt to open tender for power plants construction

Government said on Monday it would open tender for to build 500 MW coal-fired power plant in Banten province next month, followed by another tender to build two more with combined capacity of 2,400 MW three months after.

Director general of electricity Yogo Pratomo told reporters that the government will invite international participants for 500-MW Banten power plant tender. He added that the plant was expected to enter Java-Bali electricity grid by 2009.

He further said that three months after Banten tender opening the government would open tender for the construction of Tanjung Jati A and Tanjung Jati C power plants in Central Java with capacity of 1,320 MW each. He said both power plants would commence operations in 2010.

?Several investors, including Japan?s Chubu Electric had been asking details of the tender and other electricity projects that are being offered through tender,? said Yogo on a sideline of The International Friendship Exchange Council, a Japanese private institution that promotes Japan investment, to Minister of Energy and Mineral resources Purnomo Yusgiantoro.

Under the existing electricity law, investors would act as Independent Power Producers (IPP) and would sell electricity they generate to state electricity firm PLN.

Yogo said that the tender was the follow up of government?s effort to boost Indonesian infrastructure development pledged during Infrastructure Summit in Jakarta last January. Indonesia is seen to face severe electricity shortage within the next few years unless new power plants are being developed. (godang)