PLN prepares power contract for Malaysia?s TNB

State owned electricity company PT. Perusahaan Listrik Negara (PLN) is preparing a contract for the operation of a 2,000 megawatt power plant it will build in cooperation with state coal mining firm PT Bukit Asam (PTBA) and Malaysian electricity company Tenaga Nasional Berhard (TNB) in Peranap, Riau, Investor Daily reported on Wednesday.

PLN President Director Nur Pamuji said in Jakarta on Tuesday that the contract would also cover the construction of a power grid which would link the power plant with Malaysia.

He said that the cooperation contract would be the follow-up of the signing of the joint development agreement (JDA) signed with the two companies in October last year. Under the agreement, PLN, Bukit Asam and TNB agreed to jointly develop a coal-fired power plant with capacity of 2 x 1,000 megawatt and its power interconnection linking Malaysia.

?After the signing of JDA, we are now in the process to draft a cooperation contract.? he said, adding that the new cooperation contract would be needed because JDA agreement only covered job description of the three companies in which Bukit Asam will be responsible for the power plant, while PLN and TNB will be in charge of the power interconnection facilities.

The contract will cover the construction of the power plant, a power purchase agreement between the investor and PLN, the construction of the power grid and the power prices for the electricity to be sold to Malaysia, Pamuji said.

He estimated the investment for the power plant and interconnection network would reach Rp 15 trillion. (*)