Pertamina quits Cilacap coal-fired power project
Thursday, June 19 2003 - 12:36 AM WIB
State oil and gas company Pertamina said it had cancelled joint venture plant with state electricity company PLN to build 300-MW coal-fired power plant in Cilacap, Central Java, but would still support the project by lending its idle plot of land.
?We quit the project the project because of difference in business philosophy with PLN over selection of project partner. In this project, the Chinese consortium that will finance the project was picked arbitrarily. We don?t know its track record; that?s not how Pertamina work, we would like to select credible and reputable partner through tight selection,? said Pertamina president Baihaki Hakim in a parliamentary hearing on Wednesday.
Pertamina and PLN initially planned to build the plant through joint venture company PT.Geo Dipa with project financing came from a Chinese company. The project was scheduled to commence construction in 2004 and set to be completed in 2006. (alex/godang)