Medco, Fortum bag Tanjung Jati B operations, maintenance contract

JSX-listed energy firm PT. Medco Energi Internasional Tbk. announced on it, together with Finland energy service company Fortum Service Oy had bagged operations and maintenance contract for Tanjung Jati B 2x660MW coal-fired power plant for 23 years from state electricity firm PLN.

The contract value for the project was Rp. 2.8 trillion or about US$ 280 million.

According to the company?s report to the Jakarta Stock exchange filed Tuesday, the contract between PLN and Fortum-Medco consortium was signed on June 9, 2005 and had been approved by Minister of State-owned Enterprises as 100 percent shareholder of PLN on October 4, 2005.

Tanjung Jati B plant is owned by PT. Central Java Power (CJP), in which Japan trading house Sumitomo is controlling shareholder. CJP entered into a 20-year long-term lease with PLN, under which PLN will be responsible for the operation and maintenance of the power plant during the lease period.

The plant, which is located in Central Java, will commence operations in 2006. (alex)