PLN sign IDR 8.66 T Contract for Steam Power Plant Development

PLN sign IDR 8.66 T Contract for Steam Power Plant Development

PT PLN, State Electric company, had sign two engineering procurement contract (EPC) with consortium that win tender on Tanjung Awar-awar 3 Plant, East Java and Nagan Raya Plant, Aceh.

Tanjung Awar-awar plant will develop by Joint Operation China National Machinery Equipment Corp (Sinomac), China National Electric Equipment Corp (CNEEC) and PT Penta Adi Samudra and Nagan Raya plant will develop by PT Sinohydro Corporation.

The contract value for the two coal-fueled steam plant reach IDR 8.66 trillion which is IDR 2.28 trillion for local parts purchasing and USD 641 million (IDR 5.86 trillion) for import parts.

Tanjung Awar-awar plant contract value is IDR 1.49 trillion and USD 480 million with capacity 2X350 MW and for Nagan Raya plant with capacity 2X100 MW the contract is IDR 795 billion and USD 161 million.

Fahmi Mochtar President Director PLN (04/25) said 15% of financing for both project derived from PLN and the rest from commercial credit which provide by local and foreign banks.

We hope both project will start commercial operation date in October 2010 for first unit and in January 2011 for second unit.

Fahmi further elaborate Tanjung Awar-awar plant will start operation in 2010 to save 1,175 million litre fosil fuel annualy. its equal with using 1,9 million ton of coal annually so could save IDR 7,4 trillion per year.

And for Nagan Raya plant, it will save 578 thousand litre per year or equal with 1,2 million use of coal annualy and from this project could save IDR 3.6 trillion annualy.

In total, from that two projects, State could save IDR 11 trillion annually.