South Korean contractor DL E&C has signed a US15 million construction management contract with PT. Siborpa Eco Power for the 114-MW Siborpa Hydropower project in Indonesia. The plant will be built on the Bilah River located in the northeast of Sumatra island.

Once completed, this new facility is expected to generate power for more than one million people in the region per year. DL E&C will be responsible for the overall engineering and construction management of the project until August 2030.

According to DL E&C, the company was selected thanks to its alternative engineering solution. The client’s initial plan for the water channel was to build an underground tunnel stretching over 4.5 km, but this move would have been highly risky due to unstable ground conditions on the island, which is situated on the Circum-Pacific Belt.

Instead of a tunnel, DL E&C proposed an open water channel (on the surface), enhancing the efficiency of the construction work, time and cost. The client welcomed the proposal, which led to the awarding of this project.

DL E&C has been involved in hydropower business since the 1990s. In Indonesia, the company also takes part in the construction of Karian Dam, the third-largest dam in the country, as well as the Upper Chisokan Hydropower project, which is the first pumped storage hydropower plant in the country.