World Bank ready to fund Kerinci power plant if Jakarta supports it
Friday, November 21 2003 - 02:45 AM WIB
This was disclosed by German Vegara, funding manager at the World Bank’s representative office in Indonesia, in Jambi during a meeting with Jambi Governor Zulkifli Nurdin on Thursday.
World Bank wants a written statement from state electricity company PT Perusahaan Listrik Negara (PLN) stating its readiness to bear the costs of the electricity produced by Kerinci hydropower plant. The 250 MW project needs around US$500 million to $600 million, Vegara said.
“And also a guarantee from the central government. Because the World Bank currently gives priority to building of power plants for Java island, which is facing an energy crisis”.
“Kerinci hydropower plant must be built and be operated by Norwegian state company PT Statkraf SF. The project is scheduled to be completed in either 2007 or 2010,” he said.
While responding to the World Bank’s request, Zulkifli said he will meet President Megawati Soekarnoputri and discuss this matter with her.
But, previous reports indicate that the Jambi provincial administration has decided to give Kerinci project to a Chinese investor after PT Statkraf SF failed to finish the project.
Zulkifli said last week that he met with the executives of Chinese state-owned company China Triumph International Engineering Co. and offered the project to the firm.
The agreement with the Norwegian company would automatically cease if the Chinese company takes up the project, he said.
The Jambi administration, PLN and Statkraf SF signed a memorandum of understanding (MoU) in 2000 to build the hydropower plant. According to the MoU, the construction of the plant would have commenced in 2001. But Statkraf SF has not started the project so far.
The Norwegian company previously said that it was still waiting for fund disbursement from the World Bank. Later, it cited the Bali bombing as a pretext. (*)