Source: PLN close to reach agreement with consortium over PLTGU Jawa-1 project
Tuesday, January 17 2017 - 07:33 AM WIB
State-owned electricity firm PT PLN is close to reach agreement with a consortium comprising of state-owned oil and gas firm PT Pertamina, Marubeni and Sojitz Corporation over the terms and conditions of contract for the planned 2x800 MW PLTGU Jawa-1 combined cycle power plant project, according to the source.
The source told Petromnindo.com on Tuesday that once the terms and conditions have been agreed, the two will move toward the signing of the power purchase agreement (PPA) of the power plant project that would help pave the way for the consortium to raise the required funds and start construction process.
?PLN is currently making preparations for the signing of the PPA ? We have discussed it with the consortium. Much of the terms and conditions have been agreed by both parties ? The price is in line with the open bid of US$5.53/kWh,? the source explained, without providing further details.
Another source told this portal earlier that PLN planned to terminate the PLTGU Jawa-1 power plant project as it had failed to reach agreement on the terms and conditions of the project with consortium. The source said that PLN would then reappoint its subsidiary to develop the project.
The Pertamina, Marubeni, and Sojitz consortium last year won tender for the planned power plant project.
Pertamina and PLN could not be immediately reached for comment.
Editing by Reiner Simanjuntak