IBRA takes over negotiations of five power companies? contracts

The Indonesian Bank Restructuring Agency (IBRA) has taken over negotiations over the contracts of five independent power producers with state electricity company PLN, Bisnis Indonesia reported on Saturday.

The five independent power projects are Hydro power plant Asahan, which is developed by PT Bairadaya Sentranusa, steam-fired power plant Cikararang Listrindo (PT Cikarang Listrindo), geothermal power plant Cibuni (PT Yala Tekno Geothermal), steam-fired power plant Silbolga (PT Tenaga Listrik Sibolga), steam-fired power plant PT Tenaga Listrik Amurang).

PLN president Eddie Widiono Suwondho said that the five companies were part of hundreds of companies surrendered to IBRA due to their massive bad debts at local banks. The debts have been transferred to IBRA as part of the country?s bank restructuring program.

Eddie said that the negotiations over the contracts of the four of the five independent power companies were expected to be completed in December while that for the other one was waiting for the approval of its term and condition.

Speaking at a hearing with the House of Representatives (DPR), Eddie said that the contracts for other seven independent power producers were also being negotiated.

?We hope the negotiations could be completed later this month,? he said adding that the negotiations which were almost completed were those with PT Energy Sengkang, Makassar Power, HI Tubanan Power I, East Java Power, Daya Listrik Pratama, and Power Jawa Barat.

He said that PLN and PT Energy Sengkawang was for example negotiating for the price of its gas from the government while the price of the power it sells to PLN had been fixed at US$0.0428 per kWh with additional T/L fee of $0.00132 per kWh.

The negotiation with PT Makassar Power was in the process of due diligence after the company and PLN had agreed on a lease scheme at $0.0195 per kWh under which PN will be responsible to provide the fuel.

PLN had also agreed to pay $25 million to East Java as part of debt settlement agreement signed by the government, he said, adding that the state electricity company had also agreed to buy out the power project of PT Daya Listrik Pratama at $2 million. (*)