Oregon to conclude financial close of hydro power project in six months

By Thomas Sembiring

Independent power producer PT Tiga Oregon Putra hopes to be able to conclude financial close of its 7.7 MW micro hydro power plant project in Lampung within six months after the signing of a power purchase agreement (PPA) with state-owned electricity firm PT PLN.

Heru Darmadi, a Director of Oregon told Petromindo.com that construction is expected to start after the company conclude the financial close of the estimated US$2.5 million project.

He added that the company is in talks with 2-3 banks to help finance the project.

He said that construction process of the power plant project is expected to be completed in 18 months.

Tiga Oregon last week signed PPA with PLN, under which the company will sell the electricity output to PLN at a tariff of 6.60 US cents per kWh.

Editing by Reiner Simanjuntak