Velcan sells Meureubo 2 hydropower project
Thursday, August 24 2017 - 01:24 AM WIB
European hydro power developer Velcan SA said it has fully divested its 59 MW Meureubo 2 hydropower project in Indonesia?s Aceh Province, selling it to a Hong-Kong based investor.
?The transaction follows several months of administrative uncertainties which have stalled the Power Purchase Agreement (PPA) process with (Indonesia?s state-owned electricity firm) PT PLN, which is also a 25 percent consortium member in the project through its subsidiary PT PJB,? Velcan said in a statement on Wednesday.
The company said the Meureubo 2 project development costs were already fully impaired as on 31st December 2016 and the sale will have a positive impact on the 2017 financial year.
The company did not provide further details.
Velcan, which owned 70 percent interest in the project (another 5 percent is held by local company PT PPC), said in April of last year that the project suffered delays due to disagreement among parties involved in the tender and PPA negotiation process with PLN.
The Velcan-led consortium was selected as exclusive qualified prospective developer of the Meureubo 2 hydropower project in January 2015.
Editing by Reiner Simanjuntak