PLN awaits Presidential decree to begin crash program

State owned electricity company PLN is still waiting for a Presidential decree to begin the construction of several coal-fired power plants to be built under the government's crash program, PLN's acting president Djuanda Nugraha has said.

Speaking during a hearing with members of the Commission VI of the House of Representatives (DPR) on Tuesday, Djuanda said that a Presidential decree was needed to begin the auction for engineering procurement and construction (EPC) for the coal-fired power projects.

"We hope the Presidential decree will be issued on July 7, this week," he was quoted as saying by Kompas on Wednesday. He added that if the decree could be issued as expected, the engineering procurement could be carried out in October.

According to him, the construction for the coal-fired power plants would last for about 36 months. "It means all the power plants to be built under the crash program will be able to commence operation in 2009," he said.

Through the crash program, the government expects to generate additional power supply of about 20,000 MW. PLN will be responsible to provide 10,000 MW. For this purpose, the company will build 10 large scale coal-fired power plants in Java and Bali to generate about 6,900 MW of power supply. The remaining 3,100 MW will be provided by 30 small and medium-scale coal fired power plants to be built outside Java and Bali.

Djuanda said that the other 10,000 MW power supply will be provided by independent power producers (IPPs). (*)