PLN revives talks with 3 "closed-out" IPPs
Tuesday, February 18 2003 - 02:37 AM WIB
The three projects to be renegotiated are all coal-fired power plants: the 1,320 megawatts (MW) Tanjung Jati-A and the 400 MW Cilacap in central Java, and the 450 MW Serang in West Java.
These three were among the six projects that were meant to be suspended after PLN completed renegotiating with 19 independent power producers in the past year or so, Ahmad Solihin, a coordinator of IPP renegotiations, told Dow Jones Newswires Monday.
PLN will continue renegotiating, through this year, with seven IPPs out of a total 27 IPPs operating in Indonesia, Solihin said.
The remaining IPP - Karaha Bodas Co. - is in litigation with state-owned oil and gas company Pertamina, seeking compensation for the Indonesian government's cancellation of power projects.
Indonesia needs 11,000 MW in new generating capacity in seven years to 2010, and PLN will strive to make up 5,000 MW of the total capacity needed, Widiono said.
The remaining 6,000 MW will need to be supplied by independent power producers, Widiono said. But private investors' interest has so far been "zero," he added.
On its part, PLN is still seeking US$3 billion in financing to build new generating capacities to prevent a looming electricity shortfall in Indonesia's main Java-Bali grid, Widiono said.
To date, PLN has only secured commitment from a variety of sources for 40 percent of the financing required to build 2,000 MW in new generating capacity.
PLN is also planning to issue domestic bonds worth Rp900 billion to Rp1 trillion (US$=Rp8,793) and raise similar amounts in borrowing from local banks to finance the construction of a 600 MW open-cycle power plant, to be located northeast of Jakarta.
The engineering, procurement and construction tender is closing Feb. 21, company officials said. (*)