Itochu wins $400 mln coal-fired power plants deal in Indonesia
31/07/2017 10:00
TOKYO, July 31 (Reuters) - Japanese trading house Itochu
Corp 8001.T said on Monday it had won a contract from
Indonesian state power company PLN to build 200-megawatt (MW)
coal-fired power plants in South Kalimantan for $400 million.
The move comes as Japan looks to boost infrastructure
exports, including coal-fired power technology, despite growing
trend in Europe and parts of Asia to shift away from dirty coal
power towards cleaner fuels to curb greenhouse gas emissions.
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Itochu, through a consortium with South Korea's Hyundai
Engineering Co, Ltd HYENG.UL and Indonesia's PT Truba Jaya
Engineering, will engineer, procure and construct two 100 MW
plants in PLN's existing Kalselteng power station in South
Kalimantan Province. The power station currently has four 65-MW
coal-fuelled power plants.
The project that will use Japanese companies' equipment -
IHI Corp's 7013.T boilers and Fuji Electric Co's 6504.T
steam turbine power generators - will be completed in 2020.
In June, the Japan Bank for International Cooperation (JBIC)
said it and the Bank of Tokyo-Mitsubishi UFJ, a unit of
Mitsubishi UFJ Financial Group 8306.T , will provide loans of
16.9 billion yen ($152.8 million) and $89 million in total to
PLN as the Indonesian company will buy equipment from Japanese
companies to build new power plants.
($1 = 110.5900 yen)
(Reporting by Yuka Obayashi; Editing by Gopakumar Warrier)
((Yuka.Obayashi@thomsonreuters.com; +813-6441-1798; Reuters
Messaging: yuka.obayashi.thomsonreuters.com@reuters.net))
Keywords: ITOCHU INDONESIA/