Kepco will build 500-MW power plant in Indonesia

Korea Electric Power Corporation (Kepco) has reached an initial agreement with the state owned electricity company PLN to build a 500 MW-power plant, with a total investment of about US$500 million, Bisnis Indonesia reported on Thursday.

PLN?s Corporate Secretary Muljo Adji AG said in Jakarta the memorandum of understanding agreement (MOU) was signed by Kepco?s senior executive Chung Kyung Nam and PLN?s president director Eddie Widiono Suwondho.

"The Korean company is still conducting a feasibility study which will be completed less than a year," Muljo said, adding that the location of the power plant would be decided after the feasibility was completed.

The first alternative would be given to a location which has an easy access to obtain coal, which will be used as its main fuel. Kepco will also involve its subsidiary Korean Southern Power Co. Ltd in the construction and operation of the power plant.

Muljo said that the steam power plant was expected to start operation in 2004.

Kepco is owned of the world?s major power company which has built large scale power plants such as steam, geothermal and nuclear power plants. (*)