Govt to to set up team to handle preparation of Muria nuclear power plant

The government will soon establish a national team to handle the preparatory works for the construction of a nuclear power plant which will be built in the Muria peninsula, Jepara regency, Central Java, Investor Daily reported on Tuesday.

The head of the national atomic energy agency (Batan), Soedyartomo Soentono, said in Jakarta on Monday that the team would among others prepare for the auction of the Muria power project to both local and foreign investors.

He said that local and foreign companies would be allowed to take part in the operation of the Muria power plant which was expected to begin commercial operation in 2015 or 2016.

"Foreign investors can establish a joint venture with local companies - either with private firms or state firms - to operate the nuclear power plant. The most important thing is that the local companies own at least 25 percent of the stake," he was quoted as saying.

The nuclear power project which will occupy 25 hectares of land in Muria peninsula, Japara regecy, Central Java will have four power generators each with a capacity of 1000 MW.

Soedyartomo said earlier that the nuclear power project would be auctioned to private investors in July, 2008 so that the construction could be commenced in 2010. The cost for the construction is estimated to reach between US$1,350 to $1,750 per KwH. (*)