Jakarta (ANTARA News) - The government on January 8, 2010, issued a presidential decree to expedite the second phase of its 10,000 megawatt power development project, an official said.

Electricity and Energy Utilization Director General J. Purwono said on Wednesday the latest presidential decree contained provisions similar to those applicable to the first phase of the project.

"The latest presidential decree contains a governmental order to State Electricity Company (PLN) to realize the second phase of the 10,000 megawatt power project with coal, gas, geothermal and water as energy sources," Purwono said, adding the decree also concerned PLN`s power purchases from private parties.

"The second phase of the megaproject will involve private parties as developers of the power generating plants," he said.

In regard to the involvement of private parties in the project, the government would provide limited guarantees on their participation, Purnomo said.

"The guarantees will come in the form of payment subsidy to PLN so that the state company can pay its debt to the private parties," Purwono said.

He also said details on the implementation of the megaproject would be regulated in a decree to be issued by the energy and mineral resources minister.

"The ministerial decree is expected to be issued later in January or February 2010. The PLN can call project tenders afterwards," he said.

The second phase of the 10,000 megawatt power project was expected to help meet domestic need for electricity starting in 2014. The first phase of the project had been completed and was already producing electricity nationally.

The megaproject comprises 37 power generating plants with a total capacity of 9,700 megawatt scattered in 10 areas in Java island and 27 other locations outside Java. (*)

Editor: Jafar M Sidik
COPYRIGHT © 2012

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