Armstrong commits $22.5m to Indonesia mini-hydro power
Armstrong Asset Management has agreed to invest $22.5 million in a portfolio of Indonesia-based mini hydro-electric plants being developed by Inti Duta Energi, a subsidiary of Jakarta-listed construction company Nusa Konstruksi Enjiniring (NKE).
The investment comes after the Southeast Asia-focused cleantech investor entered into a partnership with Mandiri Investment Management to identify projects in Indonesia. They started by focusing on the country's emerging hydro sector, in particular mini hydro-electric power plants, which are expected to benefit from recently announced revisions to the feed-in-tariff system.
Inti Duta Energi currently has a pipeline of more than 50 megawatts of projects in various stages of development. The first project, a 5MW facility in Java, is expected to become operational by the second quarter of 2016. Three more projects in Sumatra totaling 21 MW are scheduled to come online by the end of that year.
"Together with NKE group's proven strong project management, engineering and construction capabilities, we expect to deploy our capital rapidly to deliver high-quality mini-hydro assets to support sustainable development of Indonesia," Michael McNeill, a partner at Armstrong, said in a statement.
Armstrong closed its debut clean energy fund last November at $164 million, having won commitments from a string of European development finance institutions as well as the International Finance Corporation (IFC) and fund-of-funds Unigestion.
Previous investments include committing up to US$30 million to Annex Power for solar and biogas projects in Thailand, Indonesia and the Philippines; and taking an equity stake in Symbior Elements, which is developing a portfolio of solar assets in Thailand; and committing up to $40 million in equity to support The Blue Circle's wind and solar projects in the Mekong region.
NKE has completed more than 200 infrastructure projects and over 250 building projects across Indonesia, including the construction of a 180 MW hydro-electric power plant in Sumatra.
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