PLN and Paiton "agree" on electricity price

State owned electricity company PLN and Paiton Energy has almost reached an agreement about the price of the electricity that will be produced from Paiton's second power plant in East Java.

PLN's director Ali Herman Ibrahim said in Jakarta on Thursday that the price of US$4.49 per kWh offered by Paiton Energy had almost met PLN's ideal level. He, however, said that PLN could not make its final agreement until Paiton Energy determined the term and condition of the electricity supply.

Paiton Energy plans to build its second power plant in East Java, with a capacity of about 800 MW. The new power project will cost the company about US$580 million to build.

Paiton Energy hopes that it can begin the construction next year and to start operation in 2008. (*)