Marubeni Corporation Receives Orders for Boiler and Steam Turbine Packages for Tarahan Coal Fired Steam Power Plant Project of PT PLN

Jul. 26. 2004
Marubeni Corporation

Marubeni Corporation has receive orders for two power plant equipment packages comprising circulating fluidized bed (CFB) boilers and steam turbine generators for units 3 & 4 of Tarahan Coal Fired Steam Power Plant Project (100 MW x 2 units; location: Tarahan, near Lampung, Southern Sumatra) of PT Perusahaan Listrik Negara (Persero) ("PT PLN"). This was the first case of bid tendering for a full-scale thermal power generation plant since the economic crisis. The contract amount total is approximately 22.8 billion yen. The construction costs for the project will be funded by Japanese ODA loan.

On July 26, a consortium of Marubeni Corporation and ALSTOM Power Inc. of the United States, a company with many years of experience in boilers, has concluded an agreement for a boiler package (contract amount: about 14.3 billion yen). The principal equipment will be supplied by Fuji Electric Systems Co., Ltd. for the steam turbine generator package (for which an agreement was concluded on April 22, with a contract amount of about 8.5 billion yen). Marubeni Corporation will manage all works for both packages, including auxiliary equipment and civil building and installation work. In the project, CFB boilers (with a mechanism to suppress generation of NOx and SOx) were adopted for the first time in Indonesia, and the power plant will be more environmentally-friendly compared with conventional thermal power plants.

Demand for electric power has increased rapidly in Indonesia since 2000, and greater support for the power sector has been implemented over the past few years through Japanese ODA loan. Southern Sumatra is one area in which power shortages have been serious, and the provision of Japanese ODA loan was approved for the project to ensure stable power supply in the area. Preparatory work has been undertaken for the procurement of facilities.

Starting before the economic crisis in Indonesia, Marubeni Corporation has managed numerous projects, including Tanjung Priok Combined Cycle Power Plant (1,180MW), Muara Tawar Combined Cycle Power Plant (1,095MW) and boilers for units 1 to 7 of Suralaya Coal Fired Power Plant (3,400MW). We have benefited from our friendly ties with Indonesia over many years, and have earned high marks for our project management capabilities and competence, backed by excellent results in numerous projects. We believe these have been factors in our success in winning orders for the large projects this time.

Marubeni Corporation has been aggressive in advancing into the Indonesian electricity market. The orders for the large projects at Tarahan Coal Fired Power Plant should function as a bridgehead to further strengthen the strong ties of trust we have with PT PLN. Marubeni is determined to redouble its efforts to win orders in the electricity market in Indonesia, where large power plant projects are likely to continue to get underway in the future, in cooperation with major manufacturers in Japan, Europe and the United States.

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