Last Updated March 19, 2008
Sumitomo Corporation has signed contracts with the Indonesian state power firm PT Perusahaan Listrik Negara (PLN). The contracts are for the rehabilitation of two power plants in Indonesia. One of these deals is to rehabilitate the 712MW hydraulic power plant of Saguling in West Java. The contract is worth ¥1.5bn (US$15.46mn) and the work will be carried out by Toshiba Corporation, and expected to be completed within 24 months. It is said that the Japan Bank for International Cooperation (JBIC) will potentially be supporting the project via a credit line.
The rehabilitation will involve the replacing and repairing of turbines and water cooling systems. It is expected the project will restore and maintain the plant's capabilities as well as help support a stable power supply in Indonesia.
Sumitomo has also signed a contract to rehabilitate an 800MW coal-fire power plant in the city of Probolinggo in East Java. This contract is worth ¥4.5bn (US$46.38mn). Toshiba will also be carrying out the work on this project replacing aged steam turbines components and other essential equipment. This project will also apply for support from a JBIC credit line, and the work is expected to be completed in 24 months.
Indonesia's power sector is in acute need of investment, with the country suffering from frequent power outages. The Indonesian government is looking to tackle this problem through both building new power plants, and rehabilitating existing plants.
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