Jambi wants 15% stake in Kerinci power plant

The provincial government of Jambi is demanding to have at least 15 percent ownership in the 250-Megawatt-hydro power plant to be built in the province's Kerinci regency, Investor Daily reported on Wednesday.

Acting Governor Sudarsono said in Jambi on Tuesday that having a 15 percent stake in the Kerinci power project was part of the business deal agreed with the Norwegian investor which would build the power plant.

Under the initial agreement signed by former Jambi Governor Zukkifli Nurdin, the provincial government would be allocated a 15 percent stake in the power project for free, he claimed.

"We will meet Home Minister within the next two days to discuss the power project. I am afraid that Jambi province may not be able to get the 15 percent stake in the power project (for free) as initially promised," he said.

A number of investors have said that the Jambi government had to pay for a stake in the power project. (*)