PLN takes over Asahan III hydro power plant project

State electricity firm PT Perusahaan Listrik Negara (PLN) would retake over the 174 MW Asahan III hydropower plant project in North Sumatra after PT Mega Power, the project's owner, decided to withdraw from the project, Bisnis Indonesia reported Friday.

 

North Sumatra provincial head of mining and energy office Washington Tambunan said in Medan Thursday that it was not easy for the local investor to handle such a project that needed huge investment.

 

Washington hailed Mega Power Mandiri’s move to withdraw from the project. “The project needs an investment of US$1 million per 1 MW. We are hopeful that PLN will soon start working on the project,” he said.

 

According to Washington, the provincial administration will soon extend a location permit to PLN so that construction of the Asahan III hydropower plant project could start soon.

 

Initially, the right to build the project was given to PLN with funds expected to come from Japan bank International Corporation (JBIC) in 1980’s. However, the delay in realizing the project prompted the North Sumatra provincial administration to give the project to PT Mega Mandiri Power in 2004. (*)