Project Description

PIA was engaged by PT Tapanuli Hydro Energy (THE) to perform a financial analysis in preparation for PLN’s tender for Sumatra Hydropower projects, focusing on the Sibundong Hydroelectric Power Plant (SHEPP). The assignment built on the latest feasibility studies and engineering designs to deliver an updated financial model reflecting lifecycle costs, tax and incentive frameworks, and tender-specific requirements.

The scope of work centered on evaluating an optimal tariff strategy, including the review of key PPA and RFP clauses, PPA price proposal, sensitivity analysis, and resulting financial statements. PIA assessed the project’s financial viability, tested different scenarios, and developed a revenue optimization strategy tailored to SHEPP’s characteristics.

Through this comprehensive approach, PIA equipped the Client with a robust financial framework to support decision-making and enhance competitiveness in the RFP process. The deliverables enabled THE to present a well-structured tariff proposal aligned with PLN’s requirements and to demonstrate the financial soundness of the project within the 250 MW allocation for Sumatra Hydropower.

Key Takeaways

Sound engineering design is the foundation of a competitive hydropower project, but financial structuring is equally critical. Evaluating lifecycle costs, incentives, and tariff strategies ensures viability under tender rules. Sensitivity analysis highlights key risks, while revenue optimization strengthens bankability. Together, technical and financial robustness underpin success in competitive procurement.

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