Siemens to operate Muara Tawar power plant for 10 years

State owned electricity company PLN has hired German company Siemens to handle the operation and maintenance of the 600 MW combined cycled (gas) Muara Tawar power plant for at least 10 years, Koran Tempo reported Monday.

PLN’s director for power generation and prime energy, Ali Herman Ibrahim, said in Jakarta last week that Siemens was appointed to operate the power plant and handle its maintenance service because the state owned electricity company’s employees had not yet been capable to do the job.

In addition to pay 165 million euros or about Rp1.6 trillion for the 10-year contract, excluding mobility cost for workers and equipment of Rp560 billion, PLN will still have to be responsible for the purchase of spare parts for the power plant which is located in Bekasi, West Java.

With the hiring of Siemens, the total cost for the power plant would reach Rp4 trililion because the cost of the construction alone is about US$250 million or about Rp250 million.

The construction of the first generator of the power plant is expected to be completed later this month. (*)