Komipo opens Indonesian hydroelectric plant

Komipo opens Indonesian hydroelectric plant

On Nov. 3, Korea Midland Power (Komipo) held a ceremony to celebrate
completion of the Wampu Hydroelectric Power Plant in the Karo region of
North Sumatra in Indonesia. Komipo is the first Korean power company to
establish an overseas hydroelectric power business.

The Wampu Hydroelectric Power Plant was jointly developed by Posco
Engineering and PT. Mega Power Mandiri in 2009 through an international
consortium in response to rising electricity demand in Indonesia.

After construction of power transmission facilities began in July 2012, the
project faced unexpected difficulties from the continuous volcanic eruption
of Mount Sinabung in North Sumatra. A new transmission path was created to
bypass the area, and thanks to the efforts, construction was finally
completed on April 30 this year.

As the largest shareholder of the Wampu Hydroelectric Power Plant with 46
percent stake, Komipo has been playing a leading role by managing the
construction and performing maintenance. The Export-Import Bank of Korea
provided $1.31 million in financing, and Posco Engineering took charge of
the design and construction of the power plant, making the business a
successful example of Korean companies' joint overseas expansion.

Komipo invested approximately $20 million in the Wampu Hydroelectric Power
Plant and expects investment returns of about $90 million for the next 30
years.

The United Nations has acknowledged the plant's ability to reduce greenhouse
gas emissions by 240,000 tons a year, which will allow the plant to generate
carbon credit that is expected to bring in additional revenue.

Thanks to the construction of the Wampu Hydroelectric Power Plant in
Indonesia and other existing coal-fired electric power plants in Cirebon and
Tanjung Jati, Komipo is currently generating annual profit of 20 billion won
($17 million) from its management power plants producing 2,025 megawatts of
electricity in total.

Other projects such as construction of the Cirebon 2 coal-fired electric
power plant, with a capacity to produce 1,000 megawatts of electricity, and
the Semangka hydroelectric power plant, set for completion in 2017, are
underway as well.

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Link to Original Article:
http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3026025&cl
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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com