Merak power station

Merak power station is a two unit, 120-megawatt (MW) coal-fired power plant that is currently being constructed in Magasari, West Java, Indonesia.

Location
The map below shows the approximate location where the Merak power station will be built.

Background
According to Platts, the Merak power station is currently under construction.

In August 2007 PT Merak entered into a US$108m contract for Shanghai Electric to design, build, commission and complete the plant. However, in February 2009 PT Merak issued to Shanghai Electric a “Notice of Contractor Default” alleging that:


 * "very little progress was made on the construction of the Power Plant. Apart from the temporary site office, temporary warehouse, temporary site roads, test pilings, excavation and some lean concrete (levelling concrete) for the foundations of the Boiler and Turbine Buildings, there is nothing else on site. Significantly, [Shanghai Electric] failed to complete the work in respect of Payment Milestones 1 to 5. Further, [PT Merak] also encountered numerous difficulties with [Shanghai Electric]. Although [PT Merak] tried to resolve these difficulties through meetings and correspondence, this proved futile."

A legal dispute between the two parties with Shanghai winning an injunction in March 2009 against PT Merak preventing the termination of the contract. However, in January 2010, the injunction was overturned on appeal to the Singapore High Court.

Project Details

 * Sponsor: PT Merak Energi
 * Parent company: PT Merak Energi
 * Construction: Shanghai Electric
 * Location: Magasari, West Java
 * Coordinates: -6.9579507, 107.6732659 (approximate)
 * Status: Construction
 * Gross Capacity: Unit 1: (60 MW) Unit 2: (60 MW)
 * Type: Subcritical
 * Projected in service: 2013
 * Coal Type:
 * Coal Source:
 * Source of financing:

Related SourceWatch articles

 * Indonesia and coal

External resources

 * "Shanghai Electric Group Co Ltd v PT Merak Energi Indonesia and another (2010) SGHC 2", High Court of Singapore, January 6, 2010.