PLN, Nippon Koei sign engineering services deal

State owned electricity firm PT Perusahaan Listrik Negara (PLN) and Japanese firm Nippon Koei, Co. Ltd. signed on Wednesday a contract agreement for engineering services to build a new 2x87 MW hydropower power plant called PLTA Asahan III in North Sumatra.

In the project, Nippon Koei will collaborate with Indonesian consultants including PT Connusa Energindo, PT Kwarsa Hexagon, PT Arkonin Engineering Manggala Pratama, PT Tata Guna Patria and PT Jaya CM, PLN president director Dahlan Iskan said in a statement from Medan, North Sumatra on Wednesday.

PLN has spent at least Rp 100 billion for feasibility study, design and environmental impact analysis (Amdal), he said.

He expected the support of the central government and the local North Sumatra administration to accelerate the construction of the project as PLN has obtained financial support from investors.

In May 2010, Dahlan said that the project is worth US$250 million. Funds for the project have been secured from JICA (Japan International Cooperation Agency).

PLN?s planning and technology director Nasri Sebayang told Petromindo.Com on Wednesday that the value of the engineering services is worth 2.4 billion yen.

Tender for engineering, procurement and construction (EPC) work will be held in September, he added.

According to Dahlan, engineering services refer to preparation work before tender for the EPC. (godang/bernard)