PLN sets deadline for negotiation on Tanjung Jati A power plant project
Thursday, February 1 2007 - 02:00 AM WIB
The project is owned by the consortium of Bakrie Power, International Power and Toyota Tsusho Corp.
PLN?s director for the power and primary energy Ali Herman Ibrahim said in Jakarta Wednesday that PLN has set two conditions for the consortium to meet. First, the power plant will have to start commercial production by 2012 and secondly, the power sale price offered by the consortium should be lower than 4.5 cents U.S. per kWh.
If the negotiation cannot be completed in May, the implementation of the project will have to be delayed. ?This means PLN will not be able to reach the commercial target set for 2012 and consequently, this will affect the planning for the Java-Bali power system,? he said.
Tanjung Jati A Corporation?s president director Ambono Janurianto said that efforts are underway by Bakrie to complete the negotiation before the deadline set by PLN.
Regarding the power sale price, initially Bakrie Power proposed 5.7 cents U.S. per kWh. In the renegotiation, Bakrie offered its revised power sale price at 4.8 cents U.S. per kWh and the final revised price it offered was 4.5 cents U.S. per kWh.
The Tanjung Jati A project was initially planned to be developed by Bakrie in partnership with one of Soeharto?s daughters years ago, Tomen and Britain's National Power but it along with many other power projects was halted due to financial crises that hit Indonesia in 1997. Bakrie has a 20 percent stake in the US$1.4 billion project. (*)