VP orders PLN to speed up power plant constructions

Adianto P. Simamora, The Jakarta Post, Cilegon | Mon, 04/07/2008 11:17 AM

Vice President Jusuf Kalla renewed calls Friday for state-owned power company PT Perusahaan Listrik Negara (PLN) to speed up construction of coal-fired power plants in a bid to swiftly resolve a power crisis plaguing Java.

Kalla made the statement during his visit to the Suralaya coal-fired power plant in Cilegon, West Java.

"If there are no longer any problems, please speed up the construction. We will reward the management if the project can be finished before schedule," he said.

The 652 Megawatts Suralaya project is scheduled for completion in 2010.

However, since Java has frequently suffered power blackouts due to a lack of power capacity, the government has requested PLN wrap up several key power projects on the island before next year's general election.

President Susilo Bambang Yudhoyono has recently issued a government regulation ordering PLN to complete the construction of 35 planned 10,000 MW plants, 10 of which are to be built on Java, by 2010 at the latest.

Aside from the Suralaya plant, the pipeline projects also include a 600 MW Pacitan plant in East Java, a 900 MW Naga plant in Banten, a 900 MW Pelabuhan Ratu plant in West Java and a 200 MW Lampung plant in Lampung.

"We have just promised the Vice President the Suralaya plant can be completed by March 2009," PLN's Suralaya general manager Chairudin Matondang said.

The Suralaya plant, valued at US$334 million, is being built under a cooperation with China Technical Import & Export Corporation (CNTIC), China National Machinery Import and Export Corporation, Zhejiang Electric Power Design Institute, and local firm PT Rekayasa Industri.

Chairuddin said the construction was disturbed in March by bad weather that hampered incoming materials from China.

There are already seven coal-fired 3,400 MW power plants operating near the Suralaya plant.

PLN has predicted a continuation of the electrical crisis into next year if no extra power is made available.

The Java-Bali power grid has a capacity of 15,000 MW, less than the area's 16,251 MW peak power consumption, forcing PLN to regularly cut off electricity supply in the region.