PLN will soon open tender for Sumatera-Java submarine cable

State owned electricity company PLN will build a submarine cable network linking Sumatra and Java to transmit power supply from a number of power plants in South Sumatra to industrial companies in Java, Kontan reported on Friday.

PLN?s director for construction Nasri Sebayang said the tender for the installation of the submarine cable would be opened in the third quarter of this year, so that the construction works could be commenced in the middle of 2012.

He said that as the construction of the submarine cable would take place between 2.5 and 3 years, the operation of the submarine cable could be begun only in 2016. ?We are now preparing tender documents. The prequalification will be carried out in the third quarter, before conducting the general bidding process,? he added.

PLN, in cooperation with private companies, builds a number of coal-fired power plants in South Sumatra, which will result in a surplus of power supply in the province and surrounding areas. The surplus in the power supply will be transmitted through the submarine cable to Java.

The construction of the submarine cable, which will be able to transmit 3,000 MW from Bangko Tengah in South Sumatra to Bogor, will cost about US$2 billion. According to PLN?s study, the delivery cost of the power supply using submarine cable will be cheaper than the shipment cost of coal to power plants in Java. (*)