Jambi to offer $500 million hydropower project to Chinese company

The Jambi provincial administration has decided to give a hydropower project in Kerinci regency to a Chinese investor after PT Statkraf SF, a Norwegian company, failed to finish the project, Antara news agency reported on Friday.

Jambi governor Zulkifli Nurdin said on Thursday that he met with the executives of Chinese state-owned company China Triumph International Engineering Co and offered the project to them.

Zulkifli stated it has proven that the Statkraf SF could not finish the construction of US$500 million Tirta Energi Kerinci hydropower plant, which would have 250 megawatt capacity.

The agreement with the Norwegian company would automatically cease if the Chinese company takes up the project, he said.

“We will have no problems with our agreement with the Norwegian company since there is no binding article in it, “ the governor said.

The Jambi administration, the state-owned electricity company PT Perusahaan Listrik Negara (PLN) and Statkraf SF signed a memorandum of understanding (MoU) in 2000 to build the hydropower plant.

According to the MoU, the construction of the plant would have commenced in 2001, but Statkraf SF has not started the project so far.

The Norwegian company previously said that it was still waiting for fund disbursement from the World Bank. Later it cited the Bali bombing as a pretext.

China Triumph International Engineering Co., which has experience in undertaking giant power projects, is surveying the project site, Zulkifli said. (*)