Malaysia?s SPM Bhd signs MoU to build power plant in Aceh
Wednesday, September 26 2007 - 01:31 AM WIB
Malaysian company System Protection and Maintenance Berhad (SPM) is to build a coal fired power plant in Aceh Besar district and several hydro power plants in a number of areas in Aceh under an accord signed in Banda Aceh on Tuesday, Antara news agency reported.
A memorandum of understanding (MoU) on the company’s intention to build the projects was signed by Aceh Deputy Governor Muhammad Nazar and SPM's General Manager Moh. Zaini bin Abdullah.
Zaini said his company would invest US$200 million in building a coal-fired power plant with a capacity of 2x200 megawatts, and 30-40 million Malaysian ringgit for the construction of hydropower plants with the capacity of 5-15 megawatts.
He said the coal-fired power plant in Aceh Besar was expected to be built within 30-36 months and the construction of hydropower plants in Gayo Lues district and Nagan Raya would be completed within 30 months.
He said as the security situation in Aceh has resturned to normal, 18 investors have voiced interest to invest in the province's electricity sector but only three of them have signed MoUs.
The three investors are Media Group which is building a coal-fired power plant in Nagan Raya, SPM Berhad and PT Bumi Power Energy, he said.
Currently, Aceh is in need of 220 megawatts of electricity while state owned electricity firm PLN is only able to supply 60 megawatts. In the next 10 years, the province would need 400 megawatts for daily activities.(*)