Sibolga, Amurang sign PPA amendment with PLN

Independent power producers (IPPs) PT Tenaga Listrik Sibolga (TLS) and PT Tenaga Listrik Amurang (TLA) Friday signed a power purchase agreement amendment (PPAA) with state owned electricity firm PT Perusahaan Listrik Negara (PLN).

Under the PPAA, TLS and TLA will sell the electricity produced from the projects to PLN at 4.50 U.S. cents per kWh. Both projects are expected to start commercial operation in the second half of 2009.

TLS and TLA have contracted the Chinese contractor, China National Machinery & Equipment Import & Export Corporation (CMEC), for the engineering, procurement and construction of the two projects, the two private power companies said in a joint statement.

TLS and TLA will also secure construction finance through Chinese ECA facilities.

PLN signed the PPA with PT TLA and TLS on May 27, 1996 and was amended in February 1, 2003, with the power price from Sibolga power plant lowered to 4.5 U.S. cents per kWh from the previous 6.7 U.S. cents per kWh and from Amurang power plant lowered to 4.6 U.S. cents U.S. per kWh from the previous 6.55 U.S. cents per kWh.

The Sibolga 2x100 MW coal-fired power plant project is located in North Sumatra and the Amurang 2x55 MW coal-fired power plant project is located in Minahasa, North Sulawesi.

The sponsors of the projects are PT Transmega Engineering and Malaysia?s firm Empire Energy (L) Corp.(godang)