DL E&C Wins Indonesia Hydropower CM Project... Overall Design and Construction Management

A Signal for Entry into Technology-Intensive CM Business
Resolving Constructability and Cost Issues with Alternative Design Capabilities
Public-Private Cooperation Model... Strengthening Position in the Global Market

DL E&C has entered the construction management (CM) sector based on its technological expertise in the hydropower field. On the 17th, DL E&C announced that it signed a contract worth 15 million USD (approximately 22 billion KRW) with PT. Siborpa Eco Power, a special purpose company (SPC) in which Korea Midland Power is a major shareholder. This project involves constructing the 114-megawatt (MW) Siborpa Hydropower Plant on the Bilah River in the northeastern part of Sumatra Island, Indonesia. Once completed, it will generate electricity capable of serving about one million local residents for one year.

Kim Min-ho, General Manager of Korea Midland Power (from left), Kim Kwang-il, Head of the Technology and Safety Headquarters, Moon Byung-doo, Head of Civil Engineering Business Headquarters at DL E&C, and Lee Chang-seok, Civil Engineering Sales Manager, are posing for a commemorative photo after signing the contract for the construction project of the Siborpa Hydroelectric Power Plant in Indonesia on the 14th. Provided by DL E&C.

DL E&C will be responsible for comprehensive project management, including design and construction, as CM until August 2030. CM is a technology-intensive field requiring extensive project experience and process understanding, which has been virtually monopolized by advanced countries such as the United States and Europe. During the bidding process, DL E&C highlighted its alternative design capabilities as a strength. It proposed changing from an underground tunnel to an open channel, resolving issues related to constructability, schedule, and cost.

Since starting its hydropower business in the 1990s, DL E&C has the largest construction track record in the domestic industry. In particular, this project, where a public institution proposes the project and domestic companies participate in design and construction management through public-private cooperation, is expected to become an important case of future public-private collaboration. DL E&C plans to expand its technology-intensive business areas beyond simple contracting based on this order. This strategy emphasizes technological capability over price competition.

Meanwhile, the Indonesian government plans to build more than 10.4 gigawatts (GW) of new hydropower plants by 2030. Hydropower plants are regarded as the optimal solution to power shortages in Indonesia, which is rich in water resources. DL E&C’s recent order is expected to further strengthen its position in the Indonesian market in line with these plans.

Moon Byung-du, head of the Civil Engineering Business Division, emphasized, "The technological expertise accumulated through hydropower plant construction projects in the Middle East and Southeast Asia influenced the success of this order," adding, "It is significant that we have entered the project management-type CM market, which has been monopolized by companies from advanced countries such as the United States and Europe."

This content was produced with the assistance of AI translation services.