Commercial Operation
The Korea Midland Power (KOMIPO) announced on April 29 that the Wampu Hydroelectric Power Plant in Indonesia has been put into commercial operation as the outcome of South Korea’s first privately-financed hydropower generation project abroad.
The construction process started four years ago and a total of US$170 million has been invested in the power station. The KOMIPO formed a consortium with POSCO Engineering and an Indonesian power company to clinch the deal.
“We played a leading role in the process as the largest shareholder with a shareholding ratio of 46% while the Export-Import Bank of Korea and POSCO Engineering were in charge of financing and power plant design and construction, respectively,” an official at the KOMIPO explained, continuing, “Our US$20 million investment in the facility is expected to lead to an equity investment income of US$90 million for three decades to come.”
He added, “The United Nations acknowledged that the Wampu Hydroelectric Power Plant is capable of reducing 240,000 tons of greenhouse gas a year and allowed it to form a part of the Clean Development Mechanism, and an additional cap-and-trade income is anticipated as well.”