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ISDN to build mini-hydropower plant with Indonesian district government

Friday, July 3, 2015 - 19:42

Mainboard-listed ISDN Holdings on Friday said it is on track to developing the 9.7 megawatt (MW) Datara mini-hydropower plant in South Sulawesi, Indonesia.

Its recent ground-breaking ceremony was attended by officials from the local Gowa district government - the project's joint venture (JV) partner. The district government, through its holding company, Gowa Perusda, owns 20 per cent of the JV entity while ISDN through its Indonesian unit, PT SDM, owns 49 per cent and a local business partner PT Bukit Lau owns the remaining 31 per cent.

PT SDM will offer support in financing and building the infrastructure, while the Gowa government will help in the necessary land acquisition as well as the obtainment of the relevant permits and approvals, such as the in-principle approval and location and environmental clearance permits.

The Gowa government also had to garner acceptances from the larger Gowa community - particularly the villagers whose land was affected as a result of the developmental work - and ensure that they were duly compensated, either monetarily or with land or paddy field substitution.

The mini-hydropower plant is expected to take 18 to 24 months to complete and is estimated to cost US$20 million to build. It will be funded by debt and equity financing.

Based on the new upwardly revised tariff rate of 1,290 rupiah or 9.7 US cents, it is expected to generate annual revenue of US$5.3 million. The running costs are expected to hover around 0.5-0.7 US cents per KWh.

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