POWER VIII

closed

The Eighth Power Project constitutes part of an expansion program to provide urgently needed base load generating capacity in Java. It will provide for the installation of a 400 MW coal and oil burning generating unit at Suralaya in West Java; site preparation and cooling arrangements for an ultimate 3,100 MW thermal power station at the same site; oil handling and storage facilities for the first stage (consisting of the unit referred to above and a second 400 MW unit) of the station; associated substations and buildings and structures of Suralaya; training and consultancy services. The project will enable PLN to meet the forecast demand for power, for both industrial and domestic purposes, by 1984. It is also expected to achieve further improvements in PLN's organization so that it could cope with its increasing responsibilities. No major risks are foreseen, except for possible delays in project implementation due to cumbersome contract approval and payment procedures which the Government is expected to remedy. There is also the remote possiblity that the Bukit Asam Coal Mining project may be postponed in which case coalfiring facilities under this project will not yield benefits until a later date when coal becomes available.