Ministry to take over negotiations with IPPs
Friday, February 5 2010 - 02:33 AM WIB
Sahala Lumban Gaol, Deputy of Mining, Strategic Indusries, Energy and Telecommunications at the Office of State Minister of State Enterprises, said on Thursday that his office and the Ministry of Energy and Mineral Resources would jointly handle negotations with the IPPs.
?PLN has been asked to renegotiate (with the IPPs). Still, it is the Office of State Minister of State Enterprises and the Ministry of Energy and Mineral Resources that will make decisions. We shall handle negotiations regarding corporation, while the Ministry of Energy and Mineral Resoures will handle negotiation on prices," Sahala said.
On Tuesday, PLN's President Director Dahlan Iskan said the company had stopped negotiations with 12 IPPs on the grounds that they have failed to secure funding and sites for the projects.
He did not mention the name of 12 power projects owned by the IPPs.
In total, according to PLN, there are 40 IPP power plant projects with a combined capacity of 2,200 MW, whose construction have been delayed due to various problems. The other 28 projects have started construction but the construction works have been suspended due to the delay in loan disbursement or an increase in the construction costs.
?The negotiations on such projects (the 28 projects) are continuing,? Dahlan said.
PLN expects the negotiation to be completed in the next two months. (*)