PT International Nickel Indonesia Plans to Construct 350-Megawatt Karebbe Hydro

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Researched by Industrial Info Resources (Sugar Land, Texas). Canada-based Inco, Limited (NYSE:N) (Toronto, Canada), the world’s second largest nickel producer, with its Indonesian subsidiary PT International Nickel Indonesia (Jakarta, Indonesia), plans to construct a $280 million 350-megawatt (MW) Hydroelectric Power Station, which will be located fifteen kilometers northeast of the city of Malili on the Larona River in Indonesia’s Sulawesi Selatan region. The design contract for the construction of the Karebbe Hydroelectric power project is being performed by SNC Lavalin (TSX:SNC) (Montreal, Canada) and the hydro turbine generators will be supplied and installed by VA Tech Hydro (Vienna, Austria).

The site preparation construction for the project is basically complete and the main construction of the plant (diversion channel & tailrace tunnel) is scheduled to start during the second or third quarter of 2006. Registration for the pre-qualification to tender for the main construction contract is still ongoing, with completion and final decision to be made by the second quarter of 2006. All interested parties will be required to demonstrate sufficient acceptable expertise, including availability of experienced personnel, use of specialized equipment and methods in construction. The contract will include a 262-foot high roller compacted concrete (RCC) dam with conventional concrete spillway, power intake and two (78 MVA) powerhouse structures and three to six hydro turbine generator sets (Francis or Pelton). This project is expected to be operational by the end of 2009 or beginning of 2010. IIR will continue to monitor this project as it goes through is various stages of construction and development.

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