Itochu signs EPC agreement for S. Kalimantan power project
Saturday, August 5 2017 - 02:58 AM WIB
A consortium-led by Japan?s Itochu Corporation has concluded a US$400 million EPC (engineering, procurement and construction) agreement with Indonesia?s state-owned electricity firm PT PLN for the construction of 200 MW Kalselteng-2 coal fired plant in South Kalimantan.
Other members of the consortium are South Korea?s Hyundai Engineering Co., Ltd. and Indonesia?s PT Truba Jaya Engineering.
?The construction of the project has commenced and is expected to be completed in 2020,? Itochu said in a statement earlier this week.
This is an expansion project of the existing coal fired power plants (units 1 to 4, 65 MW x 4 plants), with the construction of units 5 and 6.
Itochu said it will contribute to reducing the environmental load by utilizing the high efficiency equipment for the project which is comprised of the boilers manufactured by IHI Corporation and the steam turbine generators manufactured by Fuji Electric Co., Ltd.
To support Japanese companies? export, Japan Bank for International Cooperation and MUFG?s banking arm, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) will provide loans (approx. 16.9 billion yen and approx. $89 million) to PLN as funds for the project.
The loan provided by BTMU will be covered by insurance from Nippon Export and Investment Insurance.
Itochu said it has been actively promoting its power generation business in Indonesia and contributes to the stable supply of electricity as well by IPP (independent power producer) investments such as the Sarulla Geothermal 320MW IPP project.
Editing by Reiner Simanjuntak