Indonesia's PLN, China cos in $2 bln power projects

Indonesia's state electricity firm, PT Perusahaan Listrik Negara (PLN), has signed power plant deals worth worth around $2 billion with China's Dongfang Electric Corp and Shanghai Electric Corp, PLN said on Tuesday.

The firm said in a statement that 85 percent of the projects would be funded by loans from Export Import Bank of China.

PLN director Ali Herman Ibrahim made the announcement to reporters.
Faced with soaring power demand, Indonesia's government had stepped up its effort to build 10,000 MW of additional electricity capacity by 2010.

PLN said in statement Dongfang would build two 315 megawatts (MW) coal fired plants in East Java at a total cost of $345 million and 1.2 trillion rupiah ($129.1 million).

It would also build three 315 MW coal fired plants in Banten province in West Java at a total cost of $547 million and 1.8 trillion rupiah.

In the southern part of West Java province, Shanghai Electric would construct three 350 MW coal fired plants at a total cost of $567 million and 2.2 trillion rupiah.

Dongfang, China's largest manufacturer of power plant equipment, is the unlisted parent company of Dongfang Electrical Machinery Co. Ltd. (1072.HK: Quote, Profile , Research) (600875.SS: Quote, Profile , Research).

Shanghai Electric Corp. is a holding company controlled by the Chinese government controlling Hong Kong-listed Shanghai Electric Group Co. Ltd. (2727.HK: Quote, Profile , Research), a close second after Dongfang.

($1=9,295 rupiah)