PLN will soon sign power supply contracts with 24 new operators

State-owned electricity company PLN will soon sign power supply contracts with 24 new independent power producers (IPPs) as part of its intensive program to cope with the shortage of the power supply in the country, Bisnis Indonesia reported on Friday.

PLN's president Eddie Widiono Suwondho said in Jakarta on Thurday that 15 of the power supply contracts with the 24 independent power producers was now being processed.

"We hope the contracts could be signed within the next three months so that the new power plants would be able to begin operation in 2008," he said, adding that PLN has recently sent a letter of intent to six preferred bidders that would be appointed to develop six of the 24 new power projects.

The preferred bidders for the six power projects include a consortium of PT Cogindo Daya Bersama, PT Sutraco Dinamika Kencana which will build a steam power plant in Labuan, Sumbawa; PT Iner Powerindo for a steam power plant in Nunukan, East Kalimantan and PT Mahajaya Arya Satya for a steam power plant in Ketapang, West Kalimantan; Listrik Nusantara Sukses-Shandong Machinery for a ssteam power plant in Tanjung Balai Karimun, Riau, Smart Mitra Jo-Hutama Karya-IndoPower-Walinusa Energi for a steam power plant in Gorontalo and PT Artiduta-Trakindo-Sutraco Dinamika Kencana-YPK PLN for a steam power plant in Bima, West Nusa Tenggara.

The 24 power projects which will cost more than US$1.1 billion to build would be able to provide additional power supply of about 1,134 MW. (*)