Lotte Engineering & Construction (E&C) Co. recently won a US$230 million (250 billion won) deal to build a gas-fired combined cycle power plant in Indonesia.
The company held the contract signing ceremony on June 19 to build the Grati gas-fired combined cycle power plant at Indonesia's state-run utility firm PT Perusahaan Listrik Negara (PLN) in Jakarta.
Under the Grati Combined Cycle Power Plant Extension Project with PT PLN, Lotte E&C will build a 501 MW gas-fired combined cycle power plant at a site 75 kilometers from Surabaya located on East Java Island, by raising 30 percent of its funds from PT PLN and 70 percent from financial institutions including the Export-Import Bank of Korea.
The company will join hands with the trading unit of Samsung C&T and Indonesia-based construction company PT Hutama Karya to carry out the engineering, procurement, and construction (EPC) tasks of the US$260 million (286.08 billion won) projects, including gas turbine and steam turbine plants and 500kV substations. Construction is slated to begin later this year when the financing part of the contract is concluded, and is expected to take 26 months until completion, Lotte E&C said.
In particular, it is one of the 35GW power plant construction projects that Indonesian President Joko Widodo’s government is pushing ahead with. Accordingly, Lotte E&C has now secured a favorable position in winning plant construction orders in Indonesia. With the contract, the company will also take part in various developmental projects in the future in Indonesia.
Lotte E&C Plant Operations Director Kim Hyun-gap said, “Through the contract, the company has secured actual results evenly in the chemical, industrial, and power plant sectors in Indonesia, being recognized for its competitiveness in terms of overseas plant projects. Taking it as a foothold, we will make every effort to tap into the neighboring countries in Southeast Asia as well as Malaysia and Vietnam, which the company already has entered.”