ISDN obtains approval to develop 20 MW plant in C. Sulawesi
Thursday, July 16 2015 - 01:49 AM WIB
SGX-listed ISDN Holdings Limited, an integrated solutions provider for diverse industries, said it has received the in-principle approval to develop a 20 MW hydropower plant along the Rawa River in Sigi Regency, Central Sulawesi.
In Indonesian hydropower convention, PT PLN - Indonesia?s state-run power distributor - considers hydropower projects of less than 10 MW as mini hydropower projects while any magnitude bigger than 10 MW, such as the proposed Rawa River hydropower plant, are considered larger scale hydropower facilities.
?The Rawa River hydropower facility will be a boon to both residents and industries in the Sigi District which has an estimated population of 231,000 (based on 2014 population estimate). It counts agriculture as one of its key economic drivers, in addition to horticulture, forestry, land fishery and tourism,? said Teo Cher Koon, ISDN Holdings Managing Director and President in a statement Wednesday.
ISDN, through its investment vehicle, ISDN Investments Pte Ltd, will provide the financing and infrastructure development of the Rawa River hydropower project. It owns 90 percent of Indonesia-registered PT Laa Energy that was formed to take on bigger scale hydropower projects. The remaining 10 percent is owned by PT Petasia Energi, a local Indonesian business partner that has been tasked to manage matters such as local community liaisons, obtainment of relevant permits as well as land acquisition.
The Rawa River hydropower plant is expected to take 40 months to complete and is estimated to cost US$40 million to build; it will be funded by a combination of debt and equity financing. Based on tariff rate of US$ 9 cents, it is expected to generate annual revenue of approximately $10 million (This estimated revenue is contingent on the signing of the Power Purchase Agreement with PLN and PLN?s absolute purchase of the electricity produced by the hydropower plant when it is completed and fully operational). The running costs are expected to hover between 0.5 and 0.7 US cents per KWh.
Editing by Reiner Simanjuntak