Lotte Engineering & Construction announced on June 22 that it won a US$230-million project to build a gas-fueled combined-cycle thermal power plant in Indonesia.
Commissioned by PT PLN (Perusahaan Listrik Negara), the state-run electricity monopoly, the Grati Combined Cycle Power Plant Extension Project will be financed by the electric power company's own funds (30%) and loans from financial institutions (70%) including those of Korea EximBank. The 501-megawatt power plant will be located in a site 75 kilometers east of Surabaya in East Java.
Lotte E&C will undertake the EPC (engineering, procurement, and construction) project jointly with the international trading unit of Samsung C&T and PT Hutama Karya in building gas-turbine and steam-turbine plants and 500-kV power substations at the cost of $260 million.
The actual construction will commence at the end of this year when loan negotiations would be closed and take about 26 months to complete. The latest project is part of a wider energy resource development program pushed for by the nation's Joko Widodo administration to build 35-gigawatt capacity.
A Lotte E&C official explained that winning this project would help the company land more deals in the country. Kim Hyun-gap, head of plant business unit with Lotte E&C, said, "With the Grati project, we have secured plant orders in the areas of chemical, manufacturing, and power generation in Indonesia."
