PLN signs contract of PLTU Sewa Lombok

State utility PT Perusahaan Listrik Negara (PLN) signed on Thursday a contract of developing the steam power plant Sewa Lombok with a joint operation of PT Poeser Indonesia and Shandong Machinery & Equipment I/E Group Corporation.

The consortium will build a 2 x 33 megawatt (MW) power plant in Kebon Ayu village, Gerung district of Lombok Barat regency in West Nusa Tenggara province. The contract was signed by PLN President Director Nur Pamudji and the Joint Operation Leader Bima H. Sumawijaya.

The project development, which is awarded to the joint operation through a process of tender, will be built under an implementation guarantee from the Indonesian Exim Bank at the value of about US$ 1.05 million, while PLN will finance the development with its own budget ((APLN).

Once its construction completed, the PLTU Sewa Lombok will supply its power to the Lombok grid system. Its first unit is scheduled to start operation (COD) within 24 months since the start of construction, while the second unit will be within 26 months since the start of construction.

PLN will get the power from the power plant under a leasing contract at the price of 5.3777 US cents per kWh for 9 years.

Editing by Benget Besalicto Tnb.