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Riau-1 power station

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Riau-1 power station, also known as BlackGold Indragiri Hulu power station, is a proposed 600-megawatt (MW) coal-fired power plant in Riau Province, Indonesia.

Location

The map below shows the location of Indragiri Hulu regency, the approximate location where the plant would be built, in Riau Province.

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Background

In November 2014, it was reported that Indonesian-based coal mining company The BlackGold Group, along with Engineering company Burns & McDonnell, had announced that they intended to build a mine-mouth power plant at BlackGold's coal concessions in Indragiri Hulu, Riau. The company said that it would develop a feasibility study for a 2 x 300 MW plant.[1]

On May 21, 2015, BlackGold Natural Resources entered into an MoU with PT Nari Indonesia Forever under which PT Nari will provide design, technology, finance and technical assistance in the planning and feasibility study for the project.[2]

In December 2015 BlackGold announced an agreement with China Huadian to invest in a joint venture project consortium company for the plant, with equity interests of 40% and 60%, respectively.[3]

On June 9, 2017, BlackGold released a statement reporting that PLN will be inviting developers for the signing of six mine-mouth power plants during the month of June. BlackGold CEO stated, "We are hopeful that we will be appointed and look forward to kick-start the project soon."[4]

In September 2017 PT Samantaka Batubara (PTSB) signed a Heads of Agreement to form a new consortium with PT Pembangkitan Jawa-Bali (PJB), a wholly-owned subsidiary of PLN, and China Huadian Engineering Co Ltd (China Huadian) to construct, develop and operate the Riau-1 Project.[5]

Bribery allegations suspend project

PLN has suspended work on the proposed 600 megawatt (MW) Riau I plant after the Corruption Eradication Commission (KPK) arrested House of Representatives member Ms Eni Maulani Saragih. KPK said Eni was a suspect in an investigation into an alleged US$333,629 bribe paid by Johanes Budisutrisno Kotjo, a shareholder in the Singapore-headquartered BlackGold Natural Resources, a coal company involved in the project.[6] KPK alleges that Eni, who was a member of a parliamentary committee that oversees energy, was bribed to help facilitate the approval of the project. BlackGold insist Kotjo’s role as a consultant ended in June 2018 and that the company’s directors were “not involved whatsoever” in the attempted bribery. KPK has also raided PLN’s offices and seized documents.[6]

In October 2018 Johannes Kotjo was found guilty of bribing Representative Eni Maulani Saragih to obtain the Riau-1 PLTU project, and in December 2018 Koto was sentenced to serve two years and eight months in prison and pay a fine of Rp150 million, which could be replaced with an additional three months in prison.[7]

Project Details

  • Sponsor: PT Samantaka Batubara; PT Pembangkitan Jawa-Bali
  • Parent company: BlackGold (40%), China Huadian (60%)
  • Location: Indragiri Hulu regency, Riau province, Indonesia
  • Coordinates: -0.35, 102.533056 (approximate)
  • Status: Announced
  • Gross Capacity: 2 x 300 MW
  • Type:
  • Projected in service:
  • Coal Type:
  • Coal Source: Indragiri Hulu, Riau
  • Source of financing:

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References

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