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PLN signs agreement with two independent power producers

JAKARTA (Rambu Energy) – State utility company PT PLN on Wednesday signed heads of agreement with two independent power producers (IPPs) to develop power plants. The two IPPs are PT Dharma Hydro Nusantara and PT Tanjung Power Indonesia (TPI).

Under the agreement, Dharma Hydro Nusantara will develop hydropower plant (PLTA) Batang Toru with capacity of 500 mega watt (MW). The power plant will supply electricity to North Sumatera area during peak hour.

The agreement was signed by PLN Director Murtaqi Syamsuddin, PLN Director Bagiyo Riawan and Dharma Hydro Nusantara President Director Anton Sugiono.

The project is funded by the IPP’s equity and funding from Goldman Sachs (Asia) L.L.C.

PLN also signed power purchase agreement (PPA) with PT Tanjung Power Indonesia (TPI), a joint venture of PT Adaro Power and Korea East West Power (EWP), to develop build coal-fired power plant, called PLTU Kalsel.

The agreement was signed by PLN President Director Nur Pamudji and TPI President Director Kee Cheng Chye.
PLTU Kalsel, located in Tabalong Regency, South Kalimantan, will have a capacity of 2×100 MW.

The project was awarded through a BOOT scheme (build, own, operate and transfer). The power plant will be operated by Tanjung Power for 25 years and then hand over the plant to PLN after its contract expire.

The project is part of of the government’s second stage fast-track electricity program.

The first power plant project is not guaranteed by the government, while the second power plant project (PLTU Kalsel) is supported by the government’s guarantee letter.

The PLTU Kalsel wil supply electricity to Southeast Kalimantan with a total electricity volume of 1,800 gigawatt per year (GWh).

The power plant’s commercial operation date (DOT) is scheduled to start 33 months after the financing date is reached. The financing date is set in 12 months after the PPA is signed.

The power plant requires a total investment of around US$400 million. It will use main machines from South Korea. (*)

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