China Power Investment Corp. to invest 17 bln USD in (hydro)power projects in Indonesia

China Power Investment Corp. to invest 17 bln USD in power projects in
Indonesia
Xinhua | 2013-5-28

http://www.globaltimes.cn/content/784771.shtml#.UaQyret2cZQ

China Power Investment Corp., one of China's largest state-owned firms,
has committed to investing 17 billion US dollars in hydropower plant
projects in North Kalimantan of Indonesia, an Indonesian minister said
on Monday.

Indonesian Energy and Mineral Resources Minister Jero Wacik made the
statement after meeting with Vice President of the firm Xia Zhong at his
office.

The Chinese firm hoped to start the projects next year, at least the
ground breaking, according to Wacik.

The minister said that the hydropower station with a designed capacity
of 7,000 megawatt would generate electricity by using the water in Kayan
river.

"It would be done gradually for seven years," he said.

China Power Investment Corp. has a good track record in building
hydropower plant, as it has just completed a similar project in Myanmar.

Indonesia's electrification is at about 70 percent at present, according
to state utility firm PT PLN.

With an economy growing at a rate of more than 6 percent since 2010, and
perhaps by 6.5 percent this year and 6.8 percent next year, the demand
for electricity was going to rise by 10 percent annually, Adi Supriono,
corporate secretary of PLN, said.

Wacik said that the Chinese firm was also interested in taking part in
funding the construction of smelters in Indonesia and development of
renewable energy.

Wacik added that he and Xia expected the financing could kick off next
year as Indonesia badly needs processing sector (smelter) to support the
downstream of the country's mining industry.

Footnote: If built the North Kalimantan project would be the biggest
hydropower project, by capacity, in Southeast Asia.
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