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ISDN gets green light for hydropower plant in Central Sulawesi

INTEGRATED engineering solutions provider ISDN Holdings has received the go-ahead from the Indonesian government to develop a 20-megawatt (MW) hydropower plant in Central Sulawesi.

Projects above 10 MW are considered larger scale facilities by Indonesia's state-run power distributor PT PLN.

ISDN will provide the financing and take charge of the infrastructure development of the project through its investment vehicle ISDN Investments Pte Ltd. It is estimated to cost about US$40 million to build, to be funded by a mix of debt and equity financing.

The hydropower plant along Rawa River will take 40 months to complete, and is expected to generate annual revenue of about US$10 million based on a tariff rate of nine US cents. The revenue estimate is contingent on the firm signing a power purchase agreement with PT PLN for the latter to purchase all electricity produced by the plant when it is fully operational.

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Said ISDN managing director and president Teo Cher Koon: "The Rawa River hydropower facility will be a boon to both residents and industries in the Sigi District which has an estimated population of 231,000 (based on 2014 population estimate)."