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Hyundai Engineering secures Indonesian power plant contract

World Coal,

South Korean firm, Hyundai Engineering, has won a US$325 million contract to build a thermal coal-fired power plant in Indonesia.

The company, part of Hyundai Motor Group, said the deal includes building two 100 MW plants in the Tanjung region of Borneo.

The total construction period is expected to take 43 months, with Hyundai Engineering in control of all aspects of engineering, procurement and construction, as well as conducting trial operations once the project is finished.

Tanjung Power Indonesia, a special-purpose company set up by PT Adaro Energy, Indonesia's largest coal producer, and Korea East-West Power Co. placed the construction order.

The latest contract comes after Hyundai secured two other Indonesian orders this year. It won the US$91 million project to build a hydroelectric power station in Rajamandala and a combined cycle power plant in Batam.

Hyundai said that such headway is promising, since Indonesia's economy is expected to expand 7 – 9%/yr up to 2015, with Jakarta expected to greatly expand power production capabilities by building more thermal power plants that burn coal.

The country's coal reserves are estimated at 28 billion t.

Edited from various sources by Sam Dodson

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