Merak power station

{{#badges:CoalSwarm|Navbar-Indonesiacoal}}Merak Energi power station is a 120-megawatt (MW) coal-fired power plant in Banten Province, Indonesia.

Location

The map below shows the plant, in Pulo Ampel District, Serang Regency, Banten Province.

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Background

In August 2007 PT Merak entered into a US$108m contract for Shanghai Electric to design, build, commission and complete the plant.

Legal dispute

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 was resolved with Shanghai winning an injunction in March 2009 against PT Merak and preventing the termination of the contract. However, in January 2010, the injunction was overturned on appeal to the Singapore High Court.

In January 2014 the Singapore International Arbitration Centre ruled in favor of PT Merak, stating that while Merak's termination of the contract was not valid, Shanghai Electric had been in breach of contract. The court dismissed the two companies' claims of liabilities against each other, and stated that any damages would be determined in arbitration.

Project moves forward

The project has been under construction since at least 2012. Media coverage of this relatively small plant is nonexistent, and it is unclear whether the plant was completed on schedule in 2014 or not. As of August 2015, satellite photos suggest that the project is completed.

Project Details

• Sponsor: PT Merak Energi
• Location: Pulo Ampel District, Serang Regency, Banten Province, Java, Indonesia
• Coordinates: -5.88403, 106.06422 (exact)
• Status: Operating
• Gross Capacity: Unit 1: (60 MW) Unit 2: (60 MW)
• Type: Subcritical
• Start Date: 2014
• Coal Type:
• Coal Source:
• Source of financing:

Articles and resources

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.