ISDN teams up with Jodo Alam on Titra mini hydropower projects
Thursday, July 17 2014 - 12:43 AM WIB
SGX-listed ISDN Holdings Limited, an integrated engineering solutions provider for diverse industries, through its wholly owned subsidiary, Aenergy Holdings Private Ltd, is partnering Indonesia-based PT Jodo Alam Titra (PT Jodo), to create a portfolio of mini hydropower projects in Indonesia with combined capacity of 100 megawatt (MW).
For a start, both companies have reached an in principle agreement on the terms of the proposed acquisition of three Indonesian energy companies, ISDN said in a statement on Wednesday.
The three companies that form the subject of the proposed acquisition are PT Masewo Mareso Energy (BANASU) 6.02MW in Central Sulawesi, PT Banasu Buana Energy (MAPAHI) 9.87 MW in Central Sulawesi and PT Mapahi Masagena Energy (HALUTUA) 6.21MW that are wholly owned by PT Jodo.
They have obtained the in-principle permit (Izin Prinsip) from the Indonesian Government to build, own and operate mini hydroelectric plants at the following locations at Kacimatan Pipikoro Sigi Regency, Central Sulawesi.
Teo Cher Koon, ISDN Holdings Ltd Managing Director and President said, "We are taking a long-term stance towards this acquisition, as we have with our earlier hydropower projects announced earlier, in our bid to steadily expand our hydropower footprint in Sulawesi, one of our two main clusters, in addition to Sumatra.
"Together with our project partner, PT Jodo, we plan to jointly develop additional mini hydroelectric power plants in Indonesia with a combined target of 100 MW capacity, with each project size to be at least 5 MW over the next few years,? Teo added.
ISDN will provide the start-up capital as well as putting together future project financing to fund the development of the three mini hydropower plants in addition to assembling a diverse team of industry professionals to undertake feasibility studies, actual construction and subsequent testing and commissioning of the hydropower facilities. Following the signing of the preliminary term sheet of the proposed acquisition, ISDN will now proceed to appoint an independent hydropower plant consultant/ specialist to conduct and complete a feasibility review of these three projects.
As agreed, ISDN will own 88% equity stake of the three target companies while PT Jodo will retain 12% ownership.
PT Jodo is founded and owned by John Paulus Pantouw and Anthonius Donald Makalew. Pantouw has more than 20 years experience in hydropower engineering and water resource management. He has established a water engineering and consultancy firm, PT Tata Guna Patria, and has been involved as adviser and chief engineer for more than 25 large-scale hydro projects across Indonesia such as the 154 MW Asahan 3 Hydroelectric Dam project and 50 MW Sipansihanporas Hydroelectric Dam.
Makalew has more than 20 years experience in financial management in the energy industry whose career track record includes internal audit roles for PT Brantas Abipraya, a state-owned hydro-engineering construction firm as well as marketing head for Bank Niaga and as finance director for PT Indoenergi Alam Resources, a coal mine operator with 5.6 trillion tons deposit in Berau Regency, Borneo.
In addition to this latest announcement, ISDN has to date revealed plans to develop a series of seven mini hydropower plants: four in Sumatra and three in Sulawesi, amounting to 50 MW combined capacity. It has also received the permit to develop the larger scale 126 MW Laa River hydropower facility in Sulawesi.
Editing by Johannes Simbolon