Wuhan-based engineering company, China Gezhouba Group Corp (CGGC), has just inked a massive 11.52 billion yuan or $1.62 billion deal in Indonesia. The engineering, procurement, and construction (EPC) deal is for the construction of a hydropower station in Borneo. The project is expected to further increase the company's presence in Southeast Asia, possibly leading to additional projects further down the road.
The company, which is a subsidiary of state-owned China Energy Engineering Group Corp, has been tasked with the construction of the 1,200 megawatt-hydropower station in Indonesia's North Kalimantan province. The first phase of the project will be the construction of the Data Dian plant project, which is owned by PT Indonesia Dafeng Heshun Energy Industri.
CGGC will be put in charge of the design, construction, material procurement, and commission of the project. The company will also oversee trial operations when the project is completed to ensure that it is up to standard and that it meets all the necessary requirements before it is handed over to its owner. The trail operations are part of the signed five-year agreement between the two companies.
To ensure the safety of all of its workers, CGGC stated that it will be implemented necessary epidemic prevention and control measures that will have minimal impact on its production and operations. The measures it plans to implement are focused on boosting worker confidence to ensure smooth operations throughout the construction process.
The project, which is part of Indonesia's Global Maritime Fulcrum, is the latest undertaking under China's continually growing Belt and Road Initiative. CGGC chairman, Chen Xiaohua, mentioned in a statement that the deal is a big step forward for the initiative and for the company's continued participation in support global growth and cooperation.
Chen added that the project should allow Indonesia to better tap into its abundant hydropower assets in the Kalimantan region, which it can use to further drive economic growth. The power provided by the plant will be utilized for various industries, including powering new industrial parks that house advanced metal smelting facilities. Indonesia is aiming to transform its North Kalimantan province into the country's energy and mining portal.
China currently considers Indonesia as a key partner in promoting its Belt and Road Initiative. For this reason, the country is prepared to make significant investments in the country through various collaborative projects and partnerships. CGGC had mentioned that it is looking forward to participating in additional big-ticket projects in the country, including the construction of key facilities such as thermal power plants, highways, industrial parks, and ports.
