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Old King Coal to Soon Power Bali

Governor Pastika Signs Agreement in China for Giant Coal-Driven Power Point in North Bali.

(11/1/2010) NusaBali says that a 780 megawatt coal-drive power plant in Celukan Bawang, North Bali will commence construction in November 2010. The project, financed by two Chinese investors, is expected to go on-line in 2012.

The governor of Bali, Made Mangku Pastika, met with Chinese authorities and the project's investors during his recent visit to China with President Yudhoyono. According to Pastika, he has signed a contract with the Chinese investors, clearing the way for the Rp. 7 trillion (US$761 million) electrical generating project.

While in China, Bali's governor also took the opportunity to lobby several large Chinese corporations to invest in Bali's efforts to create a green, environmentally-friendly province.

The Chinese companies reported to be investing in the North Bali power plant under the Indonesian business entity PT General Energy Bali (GEB) are China Hudian Engineering Corporation (CHEC) and China Huadian Development (CHD).

The governor said one of the purposes of his China visit was to confirm whether the proposed power project was a double or triple combustion project. "I wanted to know if (the project) is environmentally friendly. Double or triple? If it is single burn the result is sulfur which is still dangerous. If the by products are processed again the results are environmentally friendly," explained the governor.

The Celukan Bawang facility will be introduced in three phases with 340 megawatts of power targeted to come on line in 2012.

The governor said the investment project for the new power plant in North Bali will be achieved without any financial outlay by the provincial government of Bali.