Indonesia's PLN prepares for 3 large hydropower projects

PLN tapped the help of ANZ for three large-scale hydropower projects outside Java.

The projects are the Karama 450 megawatt hydropower plant in West Sulawesi, the Batang Toru 510 MW hydropower plant in North Sumatra and the Merangin 350 MW hydropower plant in Jambi.

As financial consultant, ANZ will conduct feasility studies and ensure proper bidding process.

Previously, PLN estimated the cost for the Karama plant at $1.2 billion, while the Batang Toru project was valued at $1.2 billion and Merangin at $510 million.

The three projects will be carried out under public-private partnership schemes, PLN said in a statement.

Typically, PPP schemes are used to fund projects that the government opts to not finance.

The government’s role in a PPP ranges from sharing construction cost to ensuring land availability.

The power plants are expected to go on stream in 2018.

PLN president director Nur Pamudji said ANZ was appointed because of its experience in handling geothermal power projects and hydropower plants in Asia.

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