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Thursday, February 22, 2007

Tronoh wins Java power plant deal

Business Times

TRONOH Consolidated Bhd, a Malaysian engineering company, won a contract to build a coal-fired power plant in Rembang in Central Java province, an official of Indonesian state utility PT Perusahaan Listrik Negara said.

The power plant will have two units of 300 megawatts (MW) each, Tony Tondojoyo, head of the tender committee for the project, said by telephone yesterday.

"We haven't signed any contract yet, but according to our evaluation, they are able to build the power plant," Tondojoyo said in Jakarta.

Tronoh, which will partner an Indonesian company on the project, was the sole qualified bidder.

The Indonesian Government last year ordered Listrik Negara to add 10,000MW of coal-fired power generation capacity by 2009 to cut dependence on more expensive oil.

The utility has so far awarded half of the 10 contracts to build power plants in Java, four of which were given to Chinese companies.

A shortage of generators and transmission lines has caused frequent blackouts throughout Indonesia. The South-East Asian nation, with an estimated population of 242 million people across thousands of islands, needs to spend about US$27 billion (RM83.4 billion) on new plants and power lines by 2012 to meet demand, the World Bank has said. - Bloomberg

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