JC Holding begins feasibility study for Palembang power plant

Singapore-based JC Holding and Palembang municipality have begun a feasibility study for the construction of a 150 MW power plant in the South Sumatra province's capital, Bisnis Indonesia reported on Thursday.

Palembang mayor Eddy Santanaputra said in Palembang Wednesday that the two companies would jointly invest about US$150 million to build the gas power plant.

According to Eddy, the memorandum of understanding for the construction of the power plant was signed in the office of the Investment Coordinating Board (BKPM) in Jakarta recently. "The signing was witnessed by BKPM chairman M. Lufti and the chairman of the Palembang legislative council, Yansuri," he said.

He said that the Singaporean company and the Palembang municipality would set up a joint venture PT Palembang Power to operate the power plant, which will have two generators each with a capacity of 50 MW. "The construction is expected to begin in 2007," he said.(*)