DL E&C has secured a $15m contract for the construction management (CM) of the Siborpa Hydroelectric Power Plant in Sumatra, Indonesia.
The project, located along the Bilah River in northeastern Sumatra, will have a capacity of 114MW.
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Upon completion, the hydro plant is expected to supply electricity to approximately one million people annually.
PT Siborpa Eco Power, a special purpose company with Korea Midland Power as a major stakeholder, awarded the contract to DL E&C.
The company will manage the design and construction of the plant as the CM contractor until August 2030.
This move into CM allows DL E&C to enhance its competitiveness in a field traditionally dominated by US and European companies.
According to DL E&C, it has gained the client’s trust by focusing on planning and technology, moving from traditional subcontracting to a CM model.
The project is expected to demonstrate public-private collaboration.
DL E&C’s proposal included an ‘alternative design’ that changed the water conveyance system from an underground tunnel to an aboveground channel.
This innovation addressed potential construction, duration, and cost issues related to Sumatra’s unstable ground conditions, securing the CM project award in a bid.
DL E&C head of the civil engineering division Moon Byung-doo believes that the hydroelectric technology accumulated by the company in the Middle East and Southeast Asia helped in securing this contract.
The Indonesian government plans to build more than 10.4GW of new hydroelectric power plants by 2030, viewing hydroelectricity as a solution to power shortages by utilising abundant water resources.
DL E&C’s involvement in the Siborpa project positions the company to contribute significantly to this national initiative.
