PLN, Wijaya Karya sign contract to develop power plant Arun
Tuesday, July 9 2013 - 03:03 AM WIB
After signing the contract with PT Wijaya Karya Tbk President Director Bintang Perbowo in Jakarta on Monday, PLN President Director Nur Pamudji said that the construction of the gas-fired power plant, which is located on the area of PT Arun LNG in Lhokseumawe, Aceh and will be fed with gas supply from the area, is expected to be completed within 18 months.
He said that the signing of the contract set a new milestone for PLN as it covers for the first time two tender processes in one tender, namely the engineering procurement construction (EPC) tender, and the financing package from a lender proposed by the contractor as the winner of the EPC tender.
?Of five participants of the tender, PLN selected a winner which also provides a financing package from a creditor,? he said.
?Another new thing in the contract is that the lender who finances the power plant construction provides the loan directly to PLN instead of to the contractor,? he said, adding that the development of the power plant will be implemented without using the government guarantee.
?I hope with such scheme of development, the power plant construction can be realized soon in order to further strengthen the power system in Aceh,? said Nur Pamudji.
PT Wijaya Karya Tbk President Director Bintang Perbowo said that the construction of the power plant Arun will be completed within 18 months and it will start commercial operation at the end of 2014 or early 2015. It will have a generation capacity of 184 MW and get its gas supply from Arun.
?The project will need a total investment of around Rp 35.4 billion and 81.2 million Euro. With a strong synergy with all sides concerned, including with PLN, we?re optimistic to complete the development as expected,? he said.
Editing by Benget Besalicto ST