ISDN awards contract to Huadian to develop power projects in RI
Monday, February 17 2014 - 05:12 AM WIB
SGX-listed ISDN Holdings Limited, an integrated engineering solutions provider for diverse industries, has through its wholly owned subsidiary, Aenergy Holdings Pte Ltd, inked a master engineering, procurement and construction (EPC) contract with China Huadian Engineering Co. Ltd (China Huadian), to pave the way for the construction of the cluster of mini-hydropower projects across Indonesia that ISDN has amassed in its energy business segment.
The signing of the agreement on Monday follows the earlier Memorandum of Understanding signed in April last year which spelt out the intent of both companies to collaborate on energy-related projects in South-east Asia, ISDN said in a statement.
China Huadian is a Chinese wholly state-owned enterprise established in 2002 with a registered capital of RMB 12 billion with mainstay businesses in electricity generation and power supply as well as clean energies including wind power, nuclear power, bio-energy and solar power. Its total assets are valued at RMB 330 billion and its annual power output reached up to 300 billion kW/h in 2009. China Huadian also controls shares in limited companies such as Huadian Power International Co., Ltd, Huadian Power Co.,Ltd, State Power Nanjing Automation Co.,Ltd. and Huadian Jinshan Power Co.,Ltd.
ISDN has earmarked three mini-hydropower plants - PT Charma Paluta Energy, PT Alabama Energy and PT Prima Paluta Energy with a combined installed capacity of 24.6 megawatt located within a 25 kilometer-radius of each other in North Sumatra - to be the first projects that are to be undertaken and developed by China Huadian.
ISDN Managing Director and President Teo Cher Koon said: ?Due to its proximity, we expect China Huadian to reap economies of scale in terms of its logistics and manpower utilization that would have a positive bearing on its returns.?
The power purchase agreement with PT PLN (Persero), Indonesia's state-run power distribution company, is based on a 20-year tenure at a tariff rate of Rp 787 or 6.7 US cents per KWh. Running costs are expected to cost between 0.4 and 0.6 cents per KWh.
Editing by Reiner Simanjutak