PLN to terminate nonperforming IPPs
Friday, October 10 2014 - 04:41 AM WIB
State owned power company PT. PLN plans to terminate contracts with IPP projects that have not shown any progress. Among of them are the Kuala Tanjung and Sibolga coal-fired steam power plant projects in North Sumatera.
"Until now, there is no significant progress for Kuala Tanjung and Sibolga A&B. And we will terminate the agreements," said Nasri Sebayang, PLN Director for Construction to Petromindo recently.
The Kuala Tanjung and Sibolga projects have not been able to secure financing. Kuala Tanjung project is owned by PT Ranyza Energi, a group known related to entrepreneur Hariara Tambunan. Meanwwhile, Sibolga project is owned by PT Tenaga Listrik Sibolga. The Sibolga power purchase agreement was signed in 1995.
Editing by Reiner Simanjuntak