PLN TO BUILD RP30 TRILLION POWER PLANT IN C JAVA

Semarang, C Java, April 15 (ANTARA) - State power utility Perusahaan Listrik Negara (PLN) is ready to build a thermal power plant in Central Java with a capacity of 2,000 megawatts at a cost of Rp30 trillion.

"The 2,000 megawatt-capacity power plant is to be built to anticipate increased power needs in the region," PLN Business and Risk Management Director Murtaqi Syamsuddin said after a meeting with Central Java Governor Bibit Waluyo here on Thursday.

He said a tender for the construction of the power plant which is part of Java-Bali interconnection networks had been going on with seven investors passing the final phase of the tender.

PLN was expected to name the tender's winner in Sept 2010, he said.
The power plant would be constructed either in Batang or in Kendal district, he said adding it would take five years to complete the project.

"We will leave the mechanism of cooperation, the process of construction and the operation of the power plant over the next 25 years to the private sector. Afterwards, we will manage it ourselves," he said.

He said PLN intended to strengthen power supplies in Central Java where power demand was growing by an average of 6.5 percent per annum.

"In line with steady economic growth, power demand is projected to grow 7 to 8 percent as of 2011," he said.