Poso Energy to build 280 MW power plant in C. Sulawesi

Independent power producer PT Poso Energy will build a 280-MW hydropower plant in Poso in Central Sulawesi with total investment of about US$300 million to provide power supply for Central Sulawesi, Southeast Sulawesi and South Sulawesi.

The company's president director Ahmad Kalla said that about 30 percent of the total funds for the project would come from the company's internal source and the other 70 percent from bank loans.

"The loan will be provided by Bank Bukopin and Bank Mega," he said, following the signing of the memorandum of understanding for the development of the hydropower plant with state-owned electricity company PLN last week.

He said PLN would agree to buy the power from the hydropower plant at about 4.58 U.S. cents per kWh.

Kalla said that the turbine for the new power plant would be provided by China's Harbin Power Corp.

According to him, in addition to the 280-MW hydropower plant, PT Poso Energy is currently developing nine small power plants with a capacity of between 2 and 15 MW in Sulawesi and Sumatra. (godang)