PLN asked to review its plan to build Muara Tawar power plant
Wednesday, February 19 2003 - 03:49 AM WIB
"The construction of the Muara Tawar plant is not the only alternatives that could be taken by PLN in coping with the acute shortage of the power supply, Faby Tuniwa, the coordinator of the non-governmental organization said in Jakarta on Tuesday.
According to him, taking the advantage of the captive power plants operated by private companies would be more realistic and cheaper rather than developing a new power project such as the Murata Tawar power plant, which will use gas as its fuel.
The construction of the Muara Tawar is part of the crash program made by PLN in coping with the possible power crisis in 2004. But WG-PSR said that the construction of the Muara Tawar which would cost between US$240 million and US$270 million would bring a heavy burden to PLN?s balance sheet.
"During the first four years of its operation, PLN will need to spend between US$10 million and US$60 million a year to purchase the gas for the power plant," Faby added.
PLN?s president director Eddie Widiono Suwondho said earlier that the government?s decision to delay the plan to increase the electricity tariff might lead to the cancellation of the construction of the Muara Tawar power plant which will be built as part of the state owned electricity company PLN?s priority program to cope with the shortage of the electricity supply in Java and Bali.
He said the construction of the power plant relied much on the increase in the electricity tariff because the funding for the construction would mostly come from the rise in the electricity tariffs.
The government recently delayed PLN?s plan to increase the electricity tariff by an average of six percent per three months due to a widespread opposition from the public. PLN initially planned to launch the new tariff, which had in fact received approval from the House of Representatives (DPR), in January, last month. (*)