The Indonesian government has launched the construction of two power plants in North Sumatra financed by several export financing institutions from China, a report said Friday.

The first power project is the 2x115 MW Labuhan Angin coal- fired power plant, located in Central Tapanuli regency. The construction cost is estimated at more than 201 million U.S. dollars.

PT Cimex, a joint venture between local firms and Chinese companies, has been selected as the contractor of the project, which is expected to be completed in 2008, reported The Jakarta Post newspaper.

The second project is the 2x90 MW Asahan I hydro power plant in Toba Samosir regency. Financing for the project will come from the state budget and a Chinese investor.

China-based Huan Gian Engineering Corporation and Indonesia's PT Basra Daya Sentranusa will act as the developer of the 250 million dollars project, which is slated for completion in 2009.

The two power plants were part of the mega projects launched Thursday by President Susilo Bambang Yudhoyono.

The mega projects also include an electricity interconnection facility, and a fisheries and agribusiness project, which are expected to help turn the province into a center of manufacturing, services and agribusiness activities.

"The central government is supporting the construction of economic infrastructure facilities in North Sumatra, with the hope that the province can become the main driver of economic activities in Sumatra," Susilo said during his visit to the provincial capital of Medan.

Source: Xinhua