A wholly-owned subsidiary of Federal International (2000) has been awarded a US$17.8 million contract to supply solar street lights in Indonesia.

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The contract was awarded by PT Energi Prakarsa Perdana (“PT EPP”) Indonesia to Federal Hardware Engineering Co. Pte Ltd. (“FHEC”), which is wholly-owned by Federal, an integrated service provider and procurement specialist in the oil and gas, energy, utilities and infrastructure industries.

The total value of the contract includes ancillary support services, and is expected to be completed in 18 months.

The project’s main aim is to provide renewable energy, clean, affordable and efficient street lighting for rural areas in Indonesia.


KohKianKiong5 6.2016Koh Kian Kiong, executive chairman of Federal International (2000). NextInsight file photo

Commenting on the Group’s contract win, Mr. Koh Kian Kiong, Executive Chairman and CEO of Federal, said, “Securing this contract has enabled us to gain a foothold in the clean technology space.

"We are very grateful to PT EPP for this opportunity as we gravitate our procurement business towards more onshore projects to diversify our risks away from the offshore marine, oil and gas sectors.”

About PT EPP: Established since 2015 and based in Indonesia, PT EPP is principally engaged as a solar lighting solution provider including the supply, installation and maintenance of solar panel street lights.

Q&A with Michael Tay, Business Development Director, Federal Hardware Engineering

1              What business capabilities enabled Federal to win the contract?   

PT EPP is supported exclusively by its Chinese manufacturer and principal for Indonesia market, Federal is the appointed procurement agent for PT EPP. Federal had a solar project in Thailand in 2018 for the supply of solar power to schools in Northern Thailand.

 

2              What comprises the main scope of work under this very large US$17.8 million?

It is to supply 50,000 sets of LED street lights including ancillary support services without assembly and site installation. Site installation is to be carried out by end-user's contractor. 

 

3             Is PT Energi Prakarsa Perdana the main contractor for this project and has farmed out the procurement to Federal?

PT EPP is the supplier for the solar street lights, and Federal is the procurement agent for this project.

4            Is PT Energi appointed by the Indonesian government to execute the project? 

The whole project was awarded to the non-profit government and PT EPP is to supply the solar street lights including the lighting poles (supply by local manufacturer).

5            From where will Federal source the solar street lights ?

From a reputable solar street light manufacturer in China, which had appointed PT EPP as an exclusive agent for Indonesia market. The solar street lights have been tested and accepted by the Indonesian Government authority, namely SNI.

6            Which areas of Indonesia will have the solar-powered street lights?

Eastern part of Indonesia.

7            What is the size of the areas or the total length of the streets? 

Installation will be carried out at the villages / rural areas to be determined by the Indonesian authorities.

8            Does Federal do the installation?

No, only supply the Solar street lights and ancillary support services.

 

9             Does PT Energi Prakarsa Perdana already have similar projects in Indonesia, or is this its first? 

Yes, it is the first solar project of this project size.

10           Does PT Energi Prakarsa Perdana  have a pipeline of solar street lights projects to come?

Yes, PT FPP with Federal collaboration will seek other potential solar projects and customers in Indonesia.


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