Indonesian private companies tapped to build 3 hydro plants

PLN has decided that three hydro power plants will be built under the public-private partnership.

These are in Batang Toru in North Sumatera, Kerinci, in Jambi and Karama in West Sulawes.

“Considering that the projects require huge investments, the projects will be given to private developers. The financing may come from foreign financial institutions thus we suggest that the government provide guarantee through PT Penjaminan Infrastruktur Indonesia,” said PLN president director Nur Pamudji.

The Karama power plant will be built by PT Sulbar Group and China Gezhoumba Group. The plant will have a total capacity of 450 megawatts and requires a total investment of US$$1.2 billion.

The contract for the Kerinci plant has been awarded to PT Kerinci Hydro Energy. The investment for the 450 MW plant is forecast to hit $510 million.

In Batang Boru, Operational Cooperation Dharma Hydro will build the 500 MW power plant. The total investment is expected to reach $1.2 billion.

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