Velcan Energy sets up joint venture with PLN?s unit
Wednesday, December 4 2013 - 11:46 AM WIB
French firm Velcan Energy announced on Wednesday that it has signed an exclusive consortium agreement with PT Pembangkitan Jawa-Bali (PJB), a 100 percent subsidiary of Indonesia's national power utility PT Perusahaan Listrik Negara (PLN).
The consortium will co-develop the 59MW Meureubo 2 hydropower project in Nangroe Aceh Darussalam.
Velcan Energy started the development of Meureubo 2 in 2011 and incorporated the PT Aceh Hydro Power company as the special purpose vehicle for this project.
Velcan Energy will be the consortium leader of the Meureubo 2 hydropower project with a 70 percent stake while PJB will have a 25 percent stake and be responsible for the operations and maintenance of the power plant.
The local partner PT PPC will own the remaining 5 percent.
The consortium plans to initiate PPA negotiations with PLN during the first semester 2014.
Editing by Johannes Simbolon