JAKARTA. PT Waskita Karya (Persero) Tbk (WSKT) and PT Terregra Asia Energy Tbk (TGRA) have teamed up to develop a Rp 12.5 trillion renewable energy project in order to achieve the set target of 23% renewable energy use by 2024.
In a press release on Wednesday (6/1), Waskita Karya Director Gunadi said the company is prepared to provide support as an EPC contractor in terms of planning and development of seven power plants, consisting of five micro-hydro power plants in North Sumatra and two water power plants in Aceh.
According to Terregra's management, the five micro-hydro power plants will be developed following an electricity sales and purchase (S&P) agreement with PT PLN (Persero) with a total capacity o 42.98 megawatt, while the two water power plants, with 2x166 megawatt and 3x45 megawatt in capacity respectively, have undergone a feasibility study and received approval for their locations.
The projects, said Terregra CFO Daniel Tagu Dedo, will be financed by loans and capital injections involving local financial institutions. The company also plans to launch a rights issue and issue a green bond to support the projects. (AM/MS)