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Mar. 11, 2008
Sumitomo Corporation

Sumitomo Corporation signed the Contracts with Indonesia's PT.Plant, under the JBIC Credit Scheme. PLN (Persero) for Rehabilitation of SAGULING Hydro Electric Power Plant and PAITON Steam Power

Sumitomo Corporation (Head office: Chuo-ku, Tokyo, President: Susumu Kato) made the following contracts with PT. PLN (Persero), the state power firm in Indonesia:

  1. Rehabilitation and Modernization of Saguling Hydro Electric Power Plant unit 1-4 < 4 x 178MW >
  2. Rehabilitation of Paiton Steam Power Plant unit 1-2 < 2 x 400MW >


1) Rehabilitation and Modernization of Saguling Hydro Electric Power Plant unit 1-4 < 4 x 178MW >:
Sumitomo Corporation, on February 11, 2008, signed a contract with PT. PLN (Persero) (hereinafter called "PLN"), to rehabilitate the 712 MW hydraulic power plant of Saguling, which is located on the outskirts of Bandung city, West Java. The contract is worth approximately 1.5 billion yen. The major scope in the rehabilitation is the replacement of the significantly aged turbines and governors and the lining related to the embedded pipes of the cooling system. The work will be undertaken by Toshiba Corporation (hereinafter called "Toshiba") and Toshiba Plant Systems & Services Corporation. The work is to be completed within 24 months. The project will be applied for the Credit Line provided by Japan Bank for International Cooperation (hereinafter called "JBIC") for the Power Sector in Indonesia.

The Saguling Hydraulic Power Plant was built in 1986 by Sumitomo Corporation and its sub-contractor, Toshiba, under the Japanese government's Yen Loans. The plant has been playing a major role in supplying electricity to the capital city, Jakarta. After having operated for over 20 years, the turbines and other major components now show aged deterioration which causes a significant reduction in the efficiency of power generation. In addition the river running on the plant has being contaminated and which has causing serious damage to the cooling water system of the plant.

To improve the above situation, PLN decided to rehabilitate the plant by replacing and/or repairing, as necessary, the turbines and the water cooling systems of all 4 units with the idea of utilizing the JBIC's Credit Line. The project is expected to restore and maintain the plant's capability as well as extend its lifetime. The project shall contribute greatly to a stable power supply in Indonesia.

2) Rehabilitation of Paiton Steam Power Plant unit 1-2 < 2 x 400MW >:
Sumitomo Corporation, on March 3, 2008, also signed a contract with PLN to rehabilitate the 800 MW coal-fired power plant, which is located on the outskirts of the city of Probolinggo, East Java. The contract is worth approximately 4.5 billion yen. The work will be undertaken by Toshiba to replace some of the significantly aged steam turbine components (blades & nozzles) and the peripheral equipment (main valves & control system components etc.) and also to replace its coal pulverizer-units. The work is scheduled to be completed within 24 months. The project will be also applied for the JBIC Credit Line for the Power Sector.

The Paiton coal-fired power plant was built in 1994 by Sumitomo Corporation and its sub-contractor, Toshiba with the fund provided by the World Bank. The plant has been playing an important role in providing electricity for the western part of Java, including the Capital, Jakarta. Nearly the 15 years' operation, the plant is now suffering from aged deterioration and has been operating at significantly inefficiency level of power generation. In particular, failures of some major pieces of equipment, including the turbines and boilers, are frequently observed, indicating that they are in need of early rehabilitation.

PLN has approved this rehabilitation project for these two units with the idea of utilizing the JBIC's Credit Line. The implementation of this project should contribute to ensuring a stable power supply in Indonesia.

In Indonesia, there have been frequent planned power outages happening this year. It is anticipated that the country may face an even more serious power crisis in coming years. In its efforts to resolve the Power-Shortage problems against rapidly increasing demands for power, the Indonesian government, in addition to building new power plants, is focusing on rehabilitating existing Plants (as represented by these contracts) to prolong their lifetime and enhance capabilities and reliability. Sumitomo Corporation, making use of the above contracts, will continue its efforts to expand the support for Power-Rehabilitation projects in Indonesia.

Inquiries

Corporate Communications Department,
Sumitomo Corporation

TEL:+81-3-5166-3100News Release Contact Form

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