S

tate-run construction firm Waskita Karya is hoping the House of Representatives approves its proposal to build a mega-electricity transmission project in Sumatra, which the company says will require an investment of about Rp 13 trillion (US$1.04 billion).

Waskita corporate secretary Antonius Yulianto told The Jakarta Post on Thursday the company was eyeing state-run electricity Perusahaan Listrik Negara'€™s (PLN) transmission projects across Sumatra.

Realization of the project, however, is still awaiting approval from the House of Representative'€™s budgetary committee.

'€œ[If approved,] total investment for the project will be around Rp 13 trillion,'€ he said.

PLN, as previously reported, is expected to build the 500 kilovolt (kV) electricity transmission project to support the existing transmission network, which will stretch for over 1,000 kilometers.

The transmission lines are said to comprise 12 packages.

PLN'€™s 2013-2022 business plan shows growth in demand for electricity in Sumatra outpacing the islands of Bali or Java. On average, electricity sales to Sumatra rise between 8 and 10 percent on average each year, while in Bali and Java the rate stands at about 6.7 percent.

Sumatra'€™s electrification rate '€” which measures access to electricity '€” is also rising more quickly than in Bali or Java, at 4.3 percent compared to 2.5 percent.

The new administration of President Joko '€œJokowi'€ Widodo has pledged to add 35,000 megawatts (MW) to the nation'€™s electricity grid over the next five years, according to Vice President Jusuf Kalla, who said so late last year.

As previously reported, of the 35,000 MW planned, about 15,000 MW would be supplied by power plants belonging to PLN while the remaining 20,000 MW would be provided by independent power producers (IPPs).

Antonius said the project was part of the company'€™s three-year investment plan totaling some Rp 66 trillion, with other investments in transmission and toll-road projects.

Waskita, one of four companies slated to receive a capital injection from the government through a rights-shares issuance this year, hopes to add Rp 28 trillion in new contracts to its target of Rp 20.8 trillion if the stimulus is approved.

Waskita is expected to receive Rp 3.5 trillion in stimulus through the issuing of Rp 4.7 trillion of its shares, with the government acting as standby buyers.

The additional Rp 28 trillion, Antonius said, would all be allocated for toll-road and transmission projects.

'€œWe are planning to take over strategic infrastructure projects that have been abandoned by other companies,'€ he said.

Waskita, for instance, has revived the '€œBecakayu'€ toll road project that had been abandoned by the government for some 20 years.

The Becakayu toll road will connect Bekasi in West Java with Cawang in North Jakarta and Kampung Melayu in East Jakarta, with a total investment of some Rp 5.4 trillion. Construction of the toll road'€™s first section, which will be around 11 km, was launched in late October and is scheduled to conclude in 2016.

Waskita also acquired the Pejagan-Pemalang toll road last year from MNC Investama, part of tycoon Hary Tanoesoedibjo'€™s MNC Group business empire, for Rp 300 billion.