PT Energi Banua Perkasa

ENREKANG 4 MW MINI-HYDRO POWERPLANT PROJECT SUMMARY

Indonesia is the biggest archipelago country in the world, and with that in mind there are some
difficulties faced by the government to ensure that all the islands can get enough power and electricity.
The government has decided that to achieve higher electrification in the islands, especially in the
Eastern part of Indonesia, the best option is to build smaller power plant across the islands rather than
to build a centralized bigger capacity power plant.

We, PT Banua Energi Perkasa, has worked together with PT Bukaka Energi Utama.Tbk for many
years. We create this project to support the means of Indonesia government for Eastern Indonesia
power plan. Our 4 MW Mini-Hydro Power Plant is planned to be built on Enrekang district South
Sulawesi Province, Indonesia. The Power Plant will require a 2 Hectares of land and 3 km x 2 m area of
land acquisition. Feasibility study has been made, including topography, drilling and water availability
study. We already approached and got the approval of the land owner to buy their land with reasonable
price. USD 300,000 is needed to secure the land.

Power Plant project in Indonesia required a lot of permits and approval/recommendation from
multi-departments in Indonesia. We have managed to get all but 3 documents required. To finalize the
permit and legal documents required, operational and lobbying cost of around USD 200,000 bridging
funds is needed. We can complete all the rest of 3 documents in an estimated time of 12 working-days.

Our feasibility study shows that our area has a 3,4 m3/second of water debit with a 150 meters
height of the waterfall around the year (no dry season). The water debit is enough to produce a
maximum of 7 MW of electricity. The resource availability is measured at 98% for the planned 4 MW
Power Plant. 28 GWh of electricity will be produced annually.

Current price of the electricity from PLN is at USD 10,8 cent/kWh * area tariff factor. Enrekang
district has a 1.2 area tariff. So the electricity produced from Enrekang Mini-Hydro Power Plant can be
sold to PLN at USD 12.96 cent/kWH. Total investment needed for the project is USD 10,500,000 (ten
million and five hundred thousand US Dollar). USD 500,000 will be used for the pre-project (to finalize
the permit and land acquisition) and USD 10 million is the cost to build the Power Plant. Operation and
Management cost is estimated at 10% of the Gross Revenue and a 1% of Gross Revenue will be used for
CSR purpose. We calculated that the project will have a 21.67% of IRR and will take 3 Years and 10
Months (excluded 2 years of construction time) to break even.
 PT Energi Banua Perkasa
One important point is, once the Power Purchasing Agreement is signed by PLN, we already
have 3 Local banks ready to fully finance the project.

DOCUMENTS REQUIRED
1 Recommendation Letter from the Major of the District √
2 Recommendation Letter from Mining & Energy Department of the District √
3 Recommendation Letter for areal purpose from Public Works Department √
4 Approval Letter to Use the Water from Public Works Department of the District √
5 Recommendation Letter from Forestry Department of the District √
6 Recommendation Letter from Environmental Department of the District √
7 Principal Approval Letter of the Project from Governor of the Province √
8 Approval Letter to Use the Water from Public Works Department of the Province
9 Approval to be listed on the National Electric Supply Plan from National Electricity Company (PLN)
10 Land Acquisition Plan and Approval from Land Owner √
11 Power Purchasing Agreement (PPA)