Hutama to enter power generation business

State owned construction company PT Hutama Karya (Persero) will build a micro hydropower plant in West Sumatra as part of the company?s expansion into the power generation business.

Budi Rahmat Kurniawan said in Jakarta over the weekend that Hutama would team up with a local private company to build and operate the power plant which would have capacity of 2 x 4 megawatt (MW).

?Besides as investor, we will also become the contractor for the construction of the power plant,? Budi said quoted by Liputan6.com, adding that the local partner was now in talks about the Power Purchase Agreement (PPA) with state owned electricity company PT Perusahaan Listrik Negara.

Budi estimates the cost for the construction of the micro hydropower plant would reach about Rp 100 billion.

Hutama, which has been named by the government to build the Trans Sumatra toll road, has formed a number of joint ventures with other national companies. The company, for example, has set up a joint venture with

PT Pelindo I (Persero) port operator to develop the Belawan port, which would absorb investment totaling Rp 4.2 trillion. (*)