Wika to build diesel-fired power plant project

Publicly listed engineering and construction company PT Wijaya Karya Tbk (Wika) will build a Rp 500 billion (1US$ = Rp 10,038) diesel-fired power plant with a capacity of 40-50 megawatt in Bali under a build, operate and transfer (BOT) contract with PT Indonesia Power, a subsidiary of state-owned electricity company PT Perusahaan Listrik Negara (PLN).

Wika?s Finance Director Ganda Kusuma said in Jakarta on Tuesday that Wika would cooperate with PT Mirlindo Padu Kencana in the construction and operation of the power plant.

Wika and its partner would act as the independent power producer (IPP) and would sell the electricity to Indonesia Power which provides the power supply for PLN?s power grids in Java and Bali. Wika will have a 70 percent stake in the power project, and Mirlindo would hold the remaining 30 percent.

The project is expected to be completed in one year, he said.

?Wika will sell the electricity to Indonesia Power at Rp 1,183.2 per kilowatt hour (kwh), including fuel costs or Rp 446.14 per kwh, excluding fuel costs,? Ganda said.

Wika and its partner would operate the power plant for nine years under the BOT contract. (*)