Monday, March 17, 2008 2:14
Work begins on C. Java power plant
, The Jakarta Post , Jakarta | Fri, 09/21/2007 3:02 PM | Business
Ika Krismantari, The Jakarta Post, Jakarta
State power utility PLN officially kicked off the construction of the Rembang coal-fired power plant in Central Java, one of the schemes under the company's crash program to provide an additional power supply of 10,000 megawatts by the end of 2009.
The Rembang plant, which is the third project to commence under the crash program, will have a capacity of 630 megawatts, and cost some US$726 million, PLN said in a statement.
Unlike the other power projects, which will be constructed by Chinese manufacturing companies; the Rembang power plant will be built by a consortium made up of local company PT Primanaya Djan International and two Malaysian firms, Zelan Holdings and Tronoh Consolidated Malaysia.
The plant will have two generator units, each with a capacity of 315 megawatts. The construction of the first unit is scheduled for completion in September 2009, with the second unit due for completion three months afterwards.
PLN spokesman Sutisna Prawira said that the new power plant would require 1.9 million tons of low-rank coal per year to fire its generators.
To secure the coal supply, Sutisna said that PLN had signed long-term contracts with coal companies for the delivery of 15.2 million tons of coal per year to fuel its new power plants starting 2010.
He also said the company would save up to Rp 4 trillion ($430 million) per year from the operation of the Rembang power plant as it would cut the company's diesel consumption
PLN's power generation director, Ali Herman Ibrahim, said earlier that the company expected to reduce the use of oil-based fuels by 22 percent to 7 million kiloliters (kl) this year from an initial estimate of 9 million kl thanks to the coming onstream of a number of new coal-fired power plants.
Meanwhile, the government and the House of Representatives agreed Wednesday evening to increase next year's subvention to PLN to Rp 29.7 trillion from the Rp 27.8 trillion proposed in the 2008 draft budget.
However, both figures are lower compared than this year's allocation of Rp 32.4 trillion.
In another meeting, the government and House agreed that, starting September, PLN would purchase oil-based fuels from state-owned oil and gas firm Pertamina based on a margin at 5 percent -- lower than the current 9.5 percent, and the 13.5 percent margin Pertamina earned in 2006.
The deputy chairman of the House budget commission, Suharso Monoarfo, said as quoted by Detikfinance that the decision was aimed at improving PLN's efficiency.
