VIVAnews – Saratoga Capital LLC stated that the company had sealed an agreement of electricity purchasing/selling price with the state electricity company PLN. The selling price for electricity produced by Saratoga’s steam-based power plant Molotabu in Gorontalo worth 4.94 US cent per kilowatt hour.
“The power purchase agreement [PPA] between PLN and Saratoga will last for 25 years,” said Saratoga’s head of business development Budianto Purwahjo to VIVAnews through a telephone call on Monday, Oct. 26.
Purwahjo explained that the power plant construction will be started in January 2010. Meanwhile, for the engineering, procurement, and construction will be done by Shandong Machinery I&E Group Corporation, China.
The issue related to the troubled land acquisition has been solved, according to Purwahjo, and Saratoga has acquired the project’s land certificate from the National Land Agency.
“If everything works properly, the commercial operation date of Molotabu power plant will be done in August 2011,” he added.
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Translated by: Ariyantri E. Tarman
