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PLN ready to start 2nd 10,000 MW program
State electricity company PT PLN looks to build and manage 40 percent of the second 10,000 megawatt (MW) power program, with loans from foreign banks, an official says
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tate electricity company PT PLN looks to build and manage 40 percent of the second 10,000 megawatt (MW) power program, with loans from foreign banks, an official says.
“We are ready to construct 40 percent of the power plants while the rest will be by independent
power producers [IPPs],” PLN President Director Fahmi Mochtar told reporters on the sidelines of a breakfast meeting on Wednesday.
“We will ask [for] loans from various foreign banks [to finance the projects],” he said, without detailing the amount needed to finance 40 percent of the program.
The program is estimated to need US$17.3 billion. It reported that PLN will put up US$3.8 billion in investment for the 2nd 10,000 MW program, and IPPs $13.5 billion.
Fahmi said that foreign banks involved will include the Japan Bank for International Coorporation (JBIC), the World Bank, the Asian Development Bank (ADB), German financing institution KfW, and perhaps some banks from Saudi Arabia.
Under the first program, a total of 35 power plants will be built, 10 of which will be located in Java with 4,337 MW of output, while the rest, located off the Java-Bali system will generate 5,626 MW.
Under the second 10,000 MW program, up to 83 power plants will be tendered out, including 65 plants outside Java.
Unlike the 1st 10,000 MW program, entirely based on coal-fired plants, the 2nd 10,000 MW program will generate 12 percent of power from hydro plants, 48 percent from geothermal plants, and
14 percent from gas plants, and the remaining 26 percent from coal plants.
The second 10,000 MW program is scheduled for completion by 2012.
PLN, Fahmi said, was now still waiting for a presidential regulation to accelerate the program, “We expect the regulation will be issued within the next two weeks.”
He added that PLN planned to set up tenders for an add-on gas and coal-fired power plant (PLTGU) Muara Tawar in Bekasi, West Java, and a hydro power plant at Upper Cisokan in West Java, which would produce 1,200 and 1,000 megawatts respectively.
The bidding processes would be arranged in September.
These projects will be financed by JBIC and the World Bank.
Under the 2nd 10,000 MW power plant program, PLN expects to reduce its oil-based fuel consumption from 8.01 million kiloliters in 2009 to 4.56 million kiloliters by 2010. As a consequence, PLN consumption of coal and gas will increase.
PLN coal consumption would increase from 23.77 million tons in 2009 to 31.70 million tons by 2010, while gas consumption would increase from 313,716 Billion British Thermal Units of gas (BBTU) in 2009 to 323,447 BBTU by 2010. (naf)
