Jakarta, IO – The Public Works and Housing Ministry (PUPR) will auction off two dam projects that can potentially be used to generate power. A number of companies, both domestic and foreign, have shown interest in the auction which will be held at the end of 2024.
The two projects are the Bodri Dam in Central Java and the Merangin Dam in Jambi. They will be built through the public-private partnership scheme, per Katadata, Tue (6/2).
PUPR Water Resources Infrastructure Financing Implementation director Arvi Argyantoro explained that compared to the Bodri Dam, investors were more interested in Merangin Dam because it has a mixed return scheme, namely Availability Payment (AP) and tariff.
AP is a periodic payment by the government to investors until capital and investment returns are achieved. Meanwhile, tariffs are a return-on-investment scheme from undertaking an infrastructure project.
The estimated cost for the construction of the Marangin Dam and Bodri Dam is around Rp3.73 trillion and Rp1.74 trillion, respectively. “The Merangin Dam has potential as a power generator,” said Arvi. The land acquisition phase for the Bodri Dam is expected to start next week. (un)