Renegotiations on four power projects concluded
Wednesday, April 17 2002 - 02:09 AM WIB
Eddie Wiidiyono, the president of state electricity company PLN, said in Jakarta on Tuesday that the new pricing policy for the four independent power plants had been made by the government?s special team ?Tim Keppres 133?.
For the unit I, II and III of PLTP Gunung Salak, the price of the power which would be sold to PLN had been lowered to 3.724 U.S. cent per kwh, while for its unit IV, V and VI, the price had been reduced to 4.45 U.S. cent.
?PLN?s obligation of about US$98 million (to Gunung Salak) will be paid in cash or bonds,? he was quoted as saying.
For PLTGU Palembang Timur, the price had been lowered to 4.4 U.S. cent per kwh, which comprises of 2.16 cent for ?cash component? or component A, 0.3 cent for component B and between 1.64 cent and 1.85 cent for component C.
For PLTU Amorong, which will be built in South Sulawesi with capacity of 2 x 55 MW, the price had been lowered to 4.65 cent per kwh, comprising of 3.12 cent for component A, 031 cent for component B and 1.1 cent for component C, and 0.11 cent for component D.
For PLTU Sibolga, which will be built with a capacity of 2 x 100 MW, the price had been lowered to 4.6 cent per kwh, comprising of 3.08 cent for component A, 0.3 cent for component B, 1.1 cent for component C and 0.12 cent for component D.
The component A is the payment related to investment, while B, C and D are those related to maintenance cost, fuel and another expenses for maintenance and operation.
PLN has demanded for the renegotiations of the contracts following the sharp drop in the value of the rupiah against the U.S. dollar due to the impact of the regional currency crisis which hit Indonesia in late 1997. Previously the price ranged between 7 and 8 cent per kwh.
The government is currently renegotiating power purchasing contracts with 27 Independent Power Producers (IPPs). (*)