Geo Energy, Chinese firm to build power plants in RI
Tuesday, February 10 2015 - 01:10 AM WIB
SGX-listed integrated coal mining group Geo Energy Resources Limited signed Monday a cooperation agreement with a major Chinese State-owned Enterprise (SOE), China Nuclear Industry 22nd Construction Co., Ltd (CNI22), for the construction, management and operation of coal-fired power stations in Indonesia.
Geo Energy said in a statement that the two firms have agreed to cooperate on a nonexclusive basis for a period of two years. Geo Energy shall be responsible for procuring projects for the construction, operation and management of the Power Stations in Indonesia as well as for obtaining all governmental permits required for such projects.
CNI22 shall be responsible for constructing the power stations on a turnkey basis as an engineering, procurement and construction (EPC) contractor to Geo Energy. CNI22 shall be responsible for the management and operation of the power stations. CNI22 shall also be responsible for coordinating the procurement of the necessary financing and all technology required for the purpose of ensuring the efficient, effective and up-to-date engineering, construction, operation and management of the power stations.
CNI22 is a diversified Chinese SOE with businesses including nuclear power projects, civil projects construction, power plant projects, and the import and export of goods and technology. Founded in March 1958, CNI22 took part in the construction of China?s first nuclear power plant. During the past decades, CNI22 has completed more than 2,000 construction and installation works, and the total construction area was over 2 million square meters. CNI22 has undertaken a large number of construction works of power plants, factories, housing, airports, bridges, roads, etc. CNI22 has offices in about 39 countries, and has ongoing projects in many parts of the world.
?This relationship will be highly synergistic as both parties have complementary skill sets to ensure the successful completion and running of the power plants. This plan also compliments our core business by creating our own coal demand and will ensure stable and cheaper supplies to the power plants in the future,? said Geo Energy Executive Chairman Charles Antonny Melati.
?Our move towards the power stations is also in line with Indonesian government?s overall economic plan to have at least an additional 35,000 megawatt of power1 within the next four years in order to support the economic growth and increase the electrification ratio in the country,? he added.
Editing by Reiner Simanjuntak