Two power plants to be built in Lampung

State owned electricity company PT PLN and its subsidiary PT Indonesia Power plan to build two coal-fired power plants near Tarahan coal terminal in Lampung, with total investment of US$410 million, Bisnis Indonesia daily reported on Monday.

Ali Herman Ibrahim, the director of power generation and primary energy of PLN, said that PLN had signed agreements with three contractors to build chimney and switchyard for the third and fourth units of the existing Tarahan plant.

The three contractors Waskita Karya, Adhi Karya and Indokomas would begin the construction works in April, this year, he said, adding that the two new power units would have a combined capacity of 200 MW.

The power project which is scheduled for completion in 2006 is financed by US$250 million loans obtained from Japan Bank for International Cooperation (JBIC).

A source said that Indonesia Power was also selecting the winner of its recent tender to build another power plant in Tarahan. Bidders of the tender include Alstom, three Chinese companies and two Japanese companies.

“The winner will be announced in April or May this year,” the source said, adding that the new plant will be built with a total cost of about US$160 million. (*)