The Ministry of Public Works and Housing is exploring the market’s interest through a public-private partnership scheme to maximize the utilization of dams for electricity. Investors and companies are welcome to participate in the 6.3 MW (megaWatts) Bintang Bano mini hydropower plant in West Sumbawa regency, West Nusa Tenggara.
Herry Trisaputra Zuna, the ministry’s Director General of Public Works and Housing Infrastructure Financing, said the ministry has recommended the optimal utilization of dams to reach the target of 23% renewable energy by 2025.
The ministry’s role was also to support achieving renewable energy targets by integrating infrastructure development programs with renewable energy and electric power including hydropower plants, micro-hydropower plants and solar power plants, he said in a statement on May 24, 2022.
Zuna said the Bintang Bano micro-hydropower plant was a public-private partnership project initiated by the private sector, with a capacity of 6.3 MW and an estimated annual power output of 32.78 GWh (gigaWatts hour).
“The Bintang Bano micro-hydropower plant has an estimated investment value of IDR163.44 billion with a concession period of 27 years consisting of two years of construction and 25 years of Taking or Paying. [State-owned electricity company] PT PLN will purchase the electricity under the Take or Pay arrangement, while the return on investment will be achieved through a user payment plan,” he said.
The ministry had issued a letter of agreement to the project’s initiator to conduct a feasibility study, arrange procurement document and establish the public-private partnership agreement.
“Then, the Bintang Bano micro-hydropower public-private partnership project will enter the transaction phase. However, before the transaction process begins, a market consultation will be conducted to achieve the project’s goals,” Zuna explained.
During the market consultation, he hoped the ministry would receive feedback, responses and interest from the market about the micro-hydro project.
In January 2022, Minister Basuki Hadimuljono visited the construction project of the Bintang Bano Dam. The IDR1.44 trillion dam was built by state-owned contractors of PT Brantas Abipraya and PT Hutama Karya in joint cooperation with PT Bahagia Bangun Nusa to minimize flooding in West Sumbawa Regency by 53%.
“There is also a potential for generating electricity from hydropower of 6.3 MW, and also not yet adding floating solar panels,” he said. “This dam is also the largest in terms of its capacity in the province with a volume of 76 million cubic meters.”
Hadimuljono said the dam would be the third in West Nusa Tenggara, after the Tanju Dam in 2018 and the Mila Dam in 2019. “Finally, there is definitely tourism potential, for that God willing, the inaugurationwill be by riding a dragon boat,” he added.
