In Indonesian hydropower convention, PT PLN – Indonesia’s state-run power distributor – considers hydropower projects of less than 10 MW as mini-hydropower projects while any magnitude bigger than 10 MW, such as the proposed Rawa River hydropower plant, are considered larger scale hydropower facilities.
Mr Teo Cher Koon, ISDN Holdings Limited Managing Director and President said, "The Rawa River hydropower facility will be a boon to both residents and industries in the Sigi District which has an estimated population of 231,000 (based on 2014 population estimate). It counts agriculture as one of its key economic drivers, in addition to horticulture, forestry, land fishery and tourism."
ISDN, through its investment vehicle, ISDN Investments Pte Ltd, will provide the financing and infrastructure development of the Rawa River hydropower project. It owns 90% of Indonesia-registered PT Laa Energy that was formed to take on bigger scale hydropower projects. The remaining 10% is owned by PT Petasia Energi, a local Indonesian business partner that has been tasked to manage matters such as local community liaisons, obtainment of relevant permits as well as land acquisition.
The Rawa River hydropower plant is expected to take 40 months to complete and is estimated to cost USD$40 million to build; it will be funded by a combination of debt and equity financing. Based on tariff rate of USD 9 cents, it is expected to generate annual revenue of approximately USD$10 million (This estimated revenue is contingent on the signing of the Power Purchase Agreement with PLN and PLN’s absolute purchase of the electricity produced by the hydropower plant when it is completed and fully operational). The running costs are expected to hover between 0.5 and 0.7 US cents per KWh.