AFTER many years of delays, there is once again forward movement on China-backed plans for a series of hydro projects on the Kayan River in North Kalimantan in the Indonesian part of Borneo.

Power Construction Corporation of China (PowerChina) recently signed a memorandum of understanding (MoU) with PT Indonesia Kayan Hydropower Energy to jointly build hydropower plants with a total investment of US$17.8 billion.

Under the MoU signed in Beijing, the two firms will develop five hydropower facilities with a total generating capacity of 9,000MW.

“PowerChina began studying hydropower resources of the Kayan River in 2008 and completed the development plan for the whole basin of the river as well as the feasibility study and preliminary design of the first hydropower plant in 2013,” Guo Xiaodan, the representative of PowerChina subsidiary Sinohydro Corporation was quoted as saying by local Indonesian media.

Since entering the Indonesian market in 1995, state-owned PowerChina has developed infrastructure projects totaling around US$2.4 billion in Indonesia. This includes the EPC contract on the 220MW Nagan Raya Nad Thermal Power Plant in Sumatra.

Photo: Achmad Rabin Taim