PLN: ASAHAN 3 PROJECT AWAITING GOVERNOR'S GREEN LIGHT

Jakarta, Jul 31 (ANTARA) - State power firm PT PLN is still awaiting a green light from the North Sumatra governor to build hydro-power plant the 190 MW PLTA Asahan 3 with an investment of 250 million US dollars.

PLN's planning and technology director Bambang Praptono said in Jakarta Thursday the project under the second phase 10,000 MW mega project already has a funding commitment of the Japan International Cooperation Agency (JICA).

"But up till now, the permit which we have already applied for since 1.5 years ago, has yet to be granted, while JICA had already given a soft loan commitment at an interest of only 0.1 percent per year, which is significantly lower than the commercial interest rate which has now reached 9-10 percent.

He said that the loan is payable in 40 years with a grace period of 10 years.

"If this project becomes a reality, the price of its electricity could be very low, namely less than four US dollar cents per kWh," he said.

In addition to Asahan 3, other projects already completed under the second phase 10,000 MW mega project are the combined gas- and coal-fired power plant PLTGU Muara Tawar Add On (1,200 MW) and hydro-power plant PLTA Upper Cisokan (1,000 MW).

"Right now, the Cisokan project is still seeking a consultant and PLTGU Muara tawar will be tendered early in Agustus," he said.