JAKARTA (RambuEnergy.com) – State-controlled construction company PT Wijaya Karya Tbk (IDX:WIKA) has tied up with Hyundai Engineering & Construction Co., Ltd (HDCE) and Korea South-East Power Corporation (KOEN) to develop a hydro-power plant project in Aceh with planned installed capacity of 120 MW.
The hydro-power plant will make use of Peusangan 4 river. The deal was signed during Indonesia-Korea Business and Investment Forum 2018 in Seoul early this week (Sep. 10), during the State visit of President Joko Widodo.
PLTA Peusangan 4 is located in west part of Laut Tawar Lake, near Takengon, the capital city of Central Aceh. The power plant is one of priority projects of PLN, the state utility company.
The agreement was signed by Director of WIKA Novel Arsyad, Senior Vice President of HDCE Oh-hyuk Kwon and Executive Vice President of KOEN Hak-bin Kim. The signing of the deal was witnessed by Minister of Trade, Industry and Energy of South Korea Ungyu Park, Indonesia’s Industry Minister Airlangga Hartarto, the Head of National Investment Coordinating Board Thomas Trikasih Lembong, Indonesian Chamber of Commerce and Industry Head Rosan Roeslani and Korea’s Chamber of Commerce and Industry Head Yongman Park.
Following the signing agreement, both parties will acquire PT Ingako Energy, a company that has secured principle permit and location permit to develop the hydropower plant (PLTA Peusangan 4).
Under the deal, WIKA will hold 25% stake in Ingako Energy, HDCE 25%, KOEN 25% and 20% by IGIS Asset Management. Novel said the move to develop the hydro power plant is in line with the roadmap 2018–2023 of the company.
“The signing of the cooperation agreement will provide benefits to WIKA and other investors,” Novel said in a statement.
WIKA together with HDCE will be responsible for the engineering, procurement and construction (EPC) of the project, which is estimated to take 60 months with contracted value of US$361 million or Rp5.3 trillion (1US$=Rp14,800).
Hyundai (HDCE) has already been involved in the construction of PLTA Peusangan Unit 1 and 2. WIKA and KOEN will be responsible for operation and maintenance of the hydropower plant for 30 years.
So far, WIKA has invested in a number of power plant projects, such as PLTD Bali with installed capacity of 50 MW, PLTG Borang 60 MW, PLTMG Rengat 20 MW, PLTMG Rawa Minyak 25 MW. (*)
Written by Staff Writer, edited by Roffie Kurniawan (Roffie.email@example.com)