Malaysian investor plans to build power plant in Padang

A Malaysian company has expressed its interest to build a hydro power plant with a capacity of 10 MW in Solok regency, West Sumatra, Bisnis Indonesia reported on Tuesday.

Sudirman, the general manager of the branch office of state owned electricity company in West Sumatra, said in Padang on Monday that the Malaysian firm planned to invest about Rp 120 billion in the power project.

He refused to unveil the name of the company. "We have given the Malaysian firm four months to decide whether or not it would go ahead with the plan," he said, adding that the Malaysian company had difficulties to realize the plan because the local banks had not yet agreed to provide the funding for the project.

Like other companies, the Malaysian firm would only provide about 30 percent of the total funding for the project. The remaining 70 percent should come from local banks.

According to him, the provincial administration of West Sumatra plans to provide additional power supply of at least 1,650 MW until 2018 to meet the surge in the power demand in the province. This year, the province will built two power plants in two locations, with a capacity of 40 MW and 60 MW, respectively. (*)