Indonesian state utility selects ANZ bank to assist with three hydro projects

Indonesian State-owned electricity distributor Perusahaan Listrik Negara (PLN) has selected Australia and New Zealand Banking Group (ANZ) to aid the development of three large-scale hydropower plants.

ANZ will act as the financial consultant for the 510MW Batang Toru plant in North Sumatra, the 450MW Karama hydropower plant in West Sulawesi, and the 350MW Merangin hydropower plant in Jambi.

The Batang Toru and Karama projects are estimated to cost $1.2bn each and the Merangin plant requires an investment of $510m.

According to PLN, all three projects will be developed under public-private partnership schemes, reported Jakarta Globe.

The two-year contract with ANZ includes assistance with feasibility studies to ensure the investment potential of the projects for attracting private investments.

Meanwhile, the government will provide land as well as part of the financing for the projects. All hydroelectric plants are projected to begin operations in 2018.

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