ID :
79213
Thu, 09/10/2009 - 09:01
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ACEH TO REEXPLORE FOREIGN INVESTORS' INTEREST IN POWER GENERATION

Banda Aceh, Sept 9 (ANTARA) - Nanggroe Aceh Darussalam (NAD)'s provincial government is to reexplore foreign investors' interest in power generation in the region after the House of Representatives has passed the electricty bill that will replace Law No 15/1985, an official said.

"We will again explore investors' interest in power generation projects we hope will solve Aceh's electricity supply problems," Aceh Vice Governor Muhamad Nazar said here on Wednesday.

The new electricity bill would make it possible for the private sector to supply electricity to the public. It would also permit the formation of power tariff zones.

In addition, the bill would give local governments more authority to engage in electricity services in the spirit of desentralisation.

With the changes proposed in the new electricity bill, Nazar said, the Aceh government would again actively promote power plant projects among investors.

When implemented, the power plant projects were expected to reduce Aceh's dependence on electricity supplied by other provinces. According to data from the Aceh energy and mineral resources office, over 62 percent or 168 megawatt of the province's daily need for electricity was being met by power plants located in North Sumatra.

The Aceh government had previously offered South Korea to build a 400-MW hydropower plant in Krueng Tampur, Aceh Tamiang district.

An Aceh government delegation had visited an electricity company in South Korea and the latter had promised to help solve Aceh's electricity problem.

Unfortunately, he said, the South Korean company eventually cancelled its investment plan after meeting regulation-related obstacles in Indonesia. The South Korean company even came to doubt the possibility of finding buyers for the electricity produced, Nazar said. ***2***

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