Paiton Energy to sign LoI on power sale soon
Tuesday, July 17 2007 - 02:35 AM WIB
State electricity firm PT Perusahaan Listrik Negara (PLN) and PT Paiton Energy Company (PEC) are likely to sign a letter of intent (LoI) on power sale this week.
PLN’s director for power plant and primary energy Ali Herman Ibrahim said in Jakarta Monday that PLN and PEC, the developer of Paiton coal-fired power plant unit 3 and 4, had yet to start a negotiation on the power prices because the two parties had yet to sign the LoI.
According to Herman, soon after the LoI is signed, the negotiation (on the power sale price) will start. Herman expressed the hope that the power price set by the Paiton coal-fired power plant unit 3 and 4 was under the 4.36 U.S. cents per kilowatt hour (kWh).
He said the price of 4.36 U.S. cents per kWh referred to the price of 4.93 U.S. cents set by PEC for power from its Paiton Unit 7 and 8.
PEC has been appointed as the developer of the 800 MW Paiton Unit 3-4 because its competitor, PT Jawa Power, has failed to submit bidding document by the deadline.
There are now six power generating units at Paiton power plant complex in Situbondo, East Java with a combined capacity of 3,340 MW. PLN’s subsidiary PT Pembangkit Jawa Bali owns Paiton Unit 1 and 2 with a combined capacity of 800 MW, while PEC operates Paiton Unit 7 and 8 with a combined capacity of 1,320 MW, and PT Jawa Power Paiton Unit 5 and 6 with a combined capacity of 1,220. (godang)