Govt to save $5.4 billion from power contracts

The government will save between US$4.6 billion and $5.4 billion in state funds from the new contracts it has signed with independent power producers (IPP), Neraca daily reported on Thursday.

State power company (PLN) president director Eddie Widiono was quoted as saying on Wednesday that by end-October the firm had signed renewed agreements on electricity prices with 11 IPPs.

They were among the 16 IPPs targeted to reach such an agreement with PLN, Eddie said in a hearing with Commission VIII of the House of Representatives (DPR) in charge of energy and mineral resources, science, and technology and environmental affairs.

The plan was that PLN would conclude its negotiations with IPPs on seven power contracts before the end of 2002. They were the contracts for Kamojang (geothermal, 60 MW), Sarulla (geothermal, 330 MW), Cibuni (geothermal, 10 MW), Asahan (hydro, 180 MW), Bedugul (geothermal, 110 MW), Sibayak (geothermal, 120 MW) and Wayang Windu (geothermal, 110 MW). (*)