ANZ bank to conduct feasibility studies for three Indonesian hydroelectric projects

Indonesian state utility Perusahaan Listrik Negara (PLN) has appointed Australia and New Zealand Banking Group (ANZ) to jointly conduct feasibility studies for the construction of three large-scale hydropower plants.

In addition to providing financial consultation, ANZ will assist with ensuring a transparent bidding process as well as bankability of the Indonesian projects, under a two-year contract.

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

While the Batang Toru and Karama projects are estimated to entail an investment of $1.2bn each, the Merangin plant is expected to cost $510m.

According to the utility, all three plants will be constructed as part of public-private partnership schemes, reported Jakarta Globe.

As part of the partnership scheme, the government of Indonesia will provide land and certain investment in the projects.

The three hydroelectric plants are scheduled to commence operations in 2018.

PLN president director Nur Pamudji was quoted by the news agency as saying that the Australia-based bank was selected because of its experience with geothermal and hydropower projects in Asia.

ANZ global project and structured finance head Paul Finn commented that the bank will utilize its established presence in the country and prior experience with power projects.