Thai investors plan

Asia News Network

Jakarta

Two Thai investors, Egat International and Intermining and Energy, have announced a plan to jointly build a coal-fired power plant in Jambi, Indonesia, Jambi governor Zulkifli Nurdin said last week.

The planned power plant will have a total output capacity of 500 megawatts (MW).

"They will conduct a survey in Jambi in the near future," Zulkifli said.

He said during a working visit to Thailand last week that he had met with the Thai acting industry minister and had been shown a coal-fired plant in Lampang operated by the Electricity Generating Authority of Thailand (Egat), which is the sole owner of Egat International.

Zulkifli said that based on initial discussions and an agree-

ment with the Thai government the two investors would immediately conduct a survey of a number of regencies in Jambi that had coal deposits.

Contrary to reports, Zulkifli said he had not received a formal request from the companies to sign a contract to supply a surplus of coal, though he added that he would accept a request to provide a surplus of at least 30 years' worth of coal.

"It's still a proposal, and it should receive the approval of the regents," he said.

He added that despite the determination of the Jambi provincial government and the Thai investors to charge ahead with the plant, the project was limited by the fact that Indonesian state power company PLN would be the only buyer of the output energy.

"In response to the matter, I have contacted Cabinet Secretary Sudi Silalahi for an appointment to meet President Soesilo Bambang Yudhoyono to report the planned investment from Thailand as well as to seek a solution to the underlying issues," he said.

The head of legal and organisational affairs at the Jambi provincial secretariat, Sudirman, said the working visit to Thailand had been useful as the contingent had learned how to build an environmentally friendly plant.

"They are eager to invest in Jambi. They will conduct a survey this month," Sudirman said.