PLN to announce tender for power plants in Bangka, Kupang and Lombok

The state-Owned electricity company PT Perusahaan Listrik Negara (PLN) is planning to open tenders for private electricity projects in Bangka, Kupang and Lombok, Koran Tempo newspaper reported on Monday.

There is a huge interest from not only local investors but also foreign investors for these private power generating projects in the above provinces, PLN?s director of power generation and primary energy Ali Herman Ibrahim said.

?For example, Mitsui Indonesia has expressed its interest to PLN,? Ali told the Koran Tempo last week.

Ali didn?t disclose further details of the three projects.

The old developers of two power projects, which were closed by the government after the 1997 crisis, are now ready to continue the projects. The projects are Tanjung Jati A amd Cilegon power plants at Jepara, Central Java and Cilegon in Banten province respectively.

The government closed down six power plants in 1997.

These three will be the first projects to be put out to tender since PLN and the government have succeeded in completing the restructurization of 26 private power plants in June.

As per the PLN?s estimate, the national power consumption in 2004 will reach 97 thousand giga watt-hour (GWh) or an increase of 7.1 percent in compared to 2003.

Currently, PLN can produce only 2,310 megawatt and independent power producers can produce another 3,529 megawatt. By 2010, Indonesia will need 11,629 megawatt of power.

That?s why government offers new tenders for power plants in various places.

With electricity demand growing at 7 percent year, the PLN needed US$2.5 billion in investment funds -- $1.7 billion for the construction of new power plants and $800 million for transmission development.