Friday, May 24 2013, 06:02 AM

Business

PLN to build two steam power plants

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State-owned electricity company PT PLN will soon build two large-scale steam power plants in Pekanbaru, Riau, and East Kalimantan.

PLP president director Dahlan Iskan signed a Memorandum of Understanding with PT Rekayasa Industri president director Moch Ali Suharsono and Hubei Honguan Power Engineering Co. Ltd, president director Xia Xiaomin.

The company also signed an MoU for the construction of the East Kalimantan steam power plant with PT Adhi Karya president director Bambang Tri Wibowo and  Sinohydro Co.Ltd vice president Shen Yuming.

Dahlan was quoted on PLN's official website as saying that he hoped the two consortia managed to finish the projects on schedule.

The East Kalimantan and Pekanbaru power plants will have a capacity of 2x110 megawatts each.

The East Kalimantan power plant is estimated to cost US$150.9 million and Rp 1.1 trillion, while the Pekanbaru plant will cost $150.16 million and Rp 1.3 trillion.

PLN, along with the Regional Bank Association Asbanda), will provide the funds to develop both plants.

Both power plants are part of the 10,000 megawatt program to develop regions outside Java and Bali.