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IPP to build Asahan 4

9th February 2010 | 534 Views
Jakarta (ANTARA News) - The ministry of energy and mineral resources (ESDM) said the private company PT Badrajaya Swarna Utama will build the hydro-power plant PLTA Asahan 4 in North Sumatra.

Electricity and Energy Utilization Director General of the ESDM Ministry J Purwono said in Jakarta Monday the PLTA Asahan 3 project with a capacity of 2x87 MW would still be built by state power company PT PLN.

"The independent power producer (Badrajaya) has already agreed," he said.
Besides Asahan 4, the independent power producer (IPP) has also been invited to built other PLTAs.

He said the option would be a solution following a difference of opinion on who is supposed to build PLTA Asahan 3.

The N Sumatra regional administration wished that Asahan 3 is built by Badrajaya which had already secured a location permit, while the central government wished the project be built by PLN undder a subloan agreement (SLA) carrying a soft interest from the Japan Bank for International Cooperation (JBIC).

Purwono said Asahan 4 would be the last project which could be built using the water surface of Asahan river.

"After Asahan 4, another PLTA Asahan project would no longer be possible," he said.
The limited cabinet session chaired by Vice President Boediono on January 18, 2010, had decided that PLN will build Asahan 3 with JBIC funding. "The main consideration is that the price of electricity is lower, which is to the advantage of the state," Purwono said.(*)