M`sian company to build thermal power plant in Aceh

Banda Aceh (Antara News) - A Malaysian company is to build a thermal power plant in Aceh Besar district and several hydro power plants in a number of areas in Aceh under an accord signed here Tuesday.

A memorandum of understanding (MoU) on the Malaysia company`s intention was signed by Aceh Deputy Governor Muhammad Nazar and Moh. Zaini bin Abdullah, general manager of Malaysian private company SPM (System Protection and Maintenance) here Tuesday.

The power plants would be set up to meet energy needs in Aceh, especially for economic activities which are expected to bring about welfare for the people.

Zaini said his company would invest US$200 million in the establishment of the thermal power plants with a capacity of 2x200 megawatts, and 30-40 million Malaysian ringgit for the establishment of the hydropower plants with the capacity of 5-15 megawatts.

He said the thermal power plant in Aceh Besar was expected to be built within 30-36 months and the establishment of the hydropower plants in Gayo Lues district and two hydropower plants in Nagan Raya would be completed within 30 months.

"We hope the Aceh administration willd fully support the project so that they will be no difficulties in setting up the power plants," he said.

Meanwhile, Nazar said Aceh offered investment opportunities to any party including investors dealing with electricity which is badly needed by industries and infrastructure development in Aceh.

He said as the situation in Aceh is safe following the signing of MoU (between the Indonesian government and the now-defunct Free Aceh Movement in Helsinki), 18 investors were interested to sink their capital in the electricity sector but only three has signed MoUs.

"The three investors are Media Group which is setting up a thermal power plant in Nagan Raya, the Malaysian company and PT Bumi Power Energy, he said.

Currently, Aceh is in need of 220 megawatts of electricity while the Indonesian electricity company PLN is only able to supply 60 megawatts and in the next 10 years, the province would need 400 megawatts for daily activities.(*)
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