JAKARTA, June 2 A consortium of Japan's Electric
Power Development Co (J-Power) , Itochu Corp
and Indonesian coal miner Adaro Energy have won a
tender to develop a $3.2 billion coal-fired power plant in Java,
Indonesia's state power firm Perusahaan Listrik Negara (PLN)
said on Thursday.
The 2,000-megawatt power plant marks the first
public-private partnership (PPP) project among many that
Indonesia's government is hoping for to overhaul its
infrastructure, said Dahlan Iskan, PLN's CEO.
He said risks in the project's development would be covered
by the Indonesia Infrastructure Guarantee Fund, set up for
government initiated infrastructure projects.
"The tender is a milestone for PLN and the Indonesian
government, because this is the first public-private partnership
project that was auctioned successfully," Iskan said in a press
Power shortages are common in Indonesia, where poor
infrastructure is one of the factors restricting growth in
Southeast Asia's largest economy. The government says it needs
$150 billion in infrastructure and is looking for two-thirds
from private investors.
President Susilo Bambang Yudhoyono launched a "masterplan"
last month to drive the country to become a world top ten
economy by 2025, including many planned PPP projects.
The consortium's Pemalang power plant is expected to begin
operations in 2017.
(Reporting by Alfian; Editing by Neil Chatterjee)