Illustrative photo. (Source: AFP)Jakarta (VNA) – China Gezhouba Group Corporation (CGGC) has recently inked an 11.52 billion yuan (1.62 billion USD) deal with Indonesia Dafeng Heshun Energy Industri to construct Data Dian hydropower project in North Kalimantan province.
The project is part of the Belt and Road Initiative (BRI) and proactive connection with Indonesia’ Global Ocean Support Point strategy. The installed capacity of the power plant is 1,200 megawatt (MW) and the average annual power generation is 7,770 GWh.
CGGC Chairman Chen Xiaohua said the project should allow Indonesia to better tap into its abundant hydropower assets in the Kalimantan region and provide power supply for the construction of industrial parks with advanced metal smelting as the leading industry in such areas as Tanjung Selor.
Indonesia is aiming to transform its North Kalimantan province into the country’ energy and mining hub, while China currently considers Indonesia as a key partner in promoting the BRI, he said.
CGGC said it is looking forward to participating in additional major projects in Indonesia, including the construction of key facilities such as thermal power plants, highways, industrial parks, and ports.
In July 2019, the two countries agreed to prepare special funds in the BRI project as a result of bilateral meetings between Indonesian President Joko Widodo and Chinese President Xi Jinping on the sidelines of the G-20 Summit in Osaka, Japan.
In the meeting, Widodo took the initiative to submit a special funding request after offering Chinese projects worth of 91 billion USD.
The increase in bilateral relations helped strengthen China’ partnership with the Association of Southeast Asian Nations. Indonesia and China have signed 23 memoranda of understandings on investment and trade cooperation.
The cooperation contract includes the development of four economic corridors, rapid train research and technology cooperation, and the development of research of education./.
VNA
