Itochu wins Indonesian coal-fired power plant project

Itochu wins Indonesian coal-fired power plant project

Itochu will build two coal-fired power plants in Indonesia for about 45
billion yen ($404 million), as the Japanese trading house moves to
capitalize on growing electricity demand in emerging economies.

Indonesian utility PLN awarded the work to a consortium including Itochu and
a South Korean company. The two plants, with a total capacity of 200
megawatts, will be constructed on the grounds of existing power facilities
in the country's northern island of Kalimantan. Fuji Electric will provide
steam turbine generators, while IHI delivers equipment such as boilers.
Plant operations are scheduled to start in 2020.

Itochu's last coal-fired project was in Turkey six years ago. The company
manages such sites in the U.S., Europe and Asia, with output totaling about
3,300MW. But its operations remain small compared with peers such as
Marubeni, Mitsui & Co. and Sumitomo Corp. Itochu hopes to bolster its power
generation business by building more plants.

Southeast Asia's electricity demand is estimated to almost double from 2014
to reach 1.45 trillion kilowatt-hours in 2030, the International Energy
Agency says.

Companies need not only technical know-how, but also expertise in risk
management for infrastructure projects in emerging nations. Construction
delays often occur in such large-scale projects due to challenges operating
in unfamiliar business environments.

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Link to Original Article:
https://asia.nikkei.com/Business/Deals/Itochu-wins-Indonesian-coal-fired-pow
er-plant-project

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com