PLN signs PPA for hydro power plant project in Lampung

By Bernard Loebs

State-owned electricity firm PT. PLN and PT Tanggamus Electric Power (TEP) signed on Friday a power purchase agreement (PPA) for the planned 2x27.7 MW Semangka hydro power plant.

PLN said in a statement obtained Monday that the power plant will be developed in Sidomulyo Village, Semaka District, Tanggamus Regency, Lampung Province. The electricity produced will be distributed to the Sumatra system via a 150 kV transmission line.

TEP, which is owned by Komipo Global Pte Ltd (60%), Posco Engineering (20%), PT BS Energy (10%), and PT Nusantara Hydro Alam (10%), will obtain government guarantee in developing the project.

In addition to own equity, TEP will finance the project via loans from Sumitomo Mitsui Banking Corp and Korea Eximbank. The company hopes to be able to obtain certainty for the financing of the project within 12 months at the most after the signing of the PPA, the PLN statement said.

Construction of the US$173 million power plant project will start once the financing requirement is secured, and will take about 37 months to be completed. Commercial operation date is targeted in 2017/2018.

Editing by Reiner Simanjuntak