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Executive Summary

Karama No.1 Hydropower Project


Feasibility Study Report

EXECUTIVE SUMMARY

PT.PLN(PERSERO)

(Indonesia

China Gezhouba Group Company Limited

November 2011

China

Executive Summary

Table

of

Contents

1 Introduction ................................................................................................................................ - 1 1.1 Background of the project ............................................................................................... - 4 1.2 Basic conditions of Karama No.1 Hydropower project ................................................ - 5 1.3 Reference Standard .......................................................................................................... - 7 2. Project Survey ........................................................................................................................... - 9 2.1 The mapping data available ............................................................................................ - 9 2.2 Mapping work arrangement ......................................................................................... - 10 2.2.1 Finished work at stage 1 ...................................................................................... - 10 2.2.2 Finished work at stage 2 ...................................................................................... - 10 2.3 Finished surveys ..............................................................................................................- 11 2.3.1 Achievements at stage 1 ....................................................................................... - 11 2.3.2 Achievements at stage 2 ....................................................................................... - 11 2.4 Residual survey work .................................................................................................... - 12 3. Study on hydrology and sediment.......................................................................................... - 13 3.1 Overview of drainage basin........................................................................................... - 13 3.2 Basic data ........................................................................................................................ - 13 3.3 Meteorology .................................................................................................................... - 14 3.4 Runoff.............................................................................................................................. - 15 3.4.1 Runoff of reference stations ................................................................................ - 15 3.4.2 Damsite runoff ...................................................................................................... - 16 3.5 Flood ................................................................................................................................ - 17 3.5.1 Probable maximum flood .................................................................................... - 17 3.5.2 Frequency flood .................................................................................................... - 17 3.6 Sedimentation ................................................................................................................. - 20 3.7 Stage-discharge relation ................................................................................................ - 20 3.8 Specialized hydrologic station planning....................................................................... - 20 4 Engineering geology ................................................................................................................. - 20 4.1 Investigation Brief .......................................................................................................... - 20 4.2 Regional Geology ........................................................................................................... - 21 4.2.1 Topography ........................................................................................................... - 21 4.2.2 Stratigraphic Lithology ....................................................................................... - 21 4.2.3 Geological Structure & Earthquake ................................................................... - 21 4.2.4 Volcanic Activity ................................................................................................... - 22 4.2.5 Hydrogeology ........................................................................................................ - 22 4.3 Geology in Reservoir Area ............................................................................................ - 22 4.3.1 General Geology ................................................................................................... - 22 4.3.2 Engineering Aspects ............................................................................................. - 23 4.4 Geology at Upstream Dam Site ..................................................................................... - 25 4.4.1 Dam Site ................................................................................................................ - 25 4.4.2 Waterway System ................................................................................................. - 26 4.5 Downstream Dam Site ................................................................................................... - 27 4.5.1 Power System........................................................................................................ - 29 4.5.2 Sluice Tunnel......................................................................................................... - 30 4.5.3 Spillway ................................................................................................................. - 30 -

Executive Summary

4.6 Construction Material ................................................................................................... - 30 5 Seismicity .................................................................................................................................. - 31 5.1 Tectonic Features............................................................................................................ - 31 5.2 Seismic Activity .............................................................................................................. - 31 6 Study on power market............................................................................................................ - 32 6.1 Design target year .......................................................................................................... - 32 6.2 Power supply scope ........................................................................................................ - 32 6.3 Existing problems for power grid ................................................................................. - 32 6.4 Load forecasting ............................................................................................................. - 32 6.5 Load curve ...................................................................................................................... - 33 6.6 Development and planning of power supply ............................................................... - 33 6.7 Preliminary power balance of power system ............................................................... - 34 7 Project Layout Selection .......................................................................................................... - 34 8 Project scale .............................................................................................................................. - 35 8.1 Selection of normal pool level ....................................................................................... - 35 8.2 Selection of level of dead water ..................................................................................... - 36 8.3 Selection of installed capacity ....................................................................................... - 36 9 Recommended project arrangement ...................................................................................... - 37 9.1 Project ranking and flood control standards .............................................................. - 37 9.2 Water retaining structure .............................................................................................. - 38 9.3 Water release structures ................................................................................................ - 38 9.4 Diversion power generation system .............................................................................. - 39 9.5 Powerhouse and switching station ................................................................................ - 39 9.6 Treatment of foundation and side slope ....................................................................... - 40 9.6.1 Foundation treatment .......................................................................................... - 40 9.6.2 Side slope treatment and protection ................................................................... - 41 9.7 Safety monitoring design ............................................................................................... - 42 10 Permanent and temporary facilities ..................................................................................... - 43 10.1 Construction design ..................................................................................................... - 43 10.2 Fire fighting design ...................................................................................................... - 43 10.3 Permanent camp .......................................................................................................... - 44 11 Construction organization design ......................................................................................... - 45 11.1Construction conditions ................................................................................................ - 45 11.2 Natural construction materials ................................................................................... - 45 11.3 Construction diversion................................................................................................. - 45 11.4 Main works construction ............................................................................................. - 46 11.5 Construction traffic and general layout of construction .......................................... - 46 11.6 Overall construction schedule ..................................................................................... - 47 12 Hydraulic machinery ............................................................................................................. - 47 13 Metal structures ..................................................................................................................... - 47 14 Electric equipment ................................................................................................................. - 47 15 Transmission Line .................................................................................................................. - 48 16 Environmental impact assessment ....................................................................................... - 49 16.1 Environmental conditions of project area ................................................................. - 49 16.2 Environmental impact forecasting and evaluation ................................................... - 49 16.2.1 Water environment impact forecasting ............................................................ - 49 -

Executive Summary

16.2.2 Impact of engineering inundation land occupancy ......................................... - 50 16.2.3 Ecological environment impact......................................................................... - 51 16.2.4 Adverse impact during construction period .................................................... - 52 16.2.5 Impact on the social economy ........................................................................... - 53 16.2.6 Discharge amount of sewage and domestic garbage during operating period- 54
16.3 Countermeasures and measures for environmental protection ............................... - 54 16.3.1 Environmental protection measures during construction.............................. - 54 16.3.2 Water and soil conservation measures ............................................................. - 55 16.3.3 Ecological conservation measures .................................................................... - 56 16.4 Environment management and monitoring .............................................................. - 57 16.5 Environmental protection investment estimate ........................................................ - 57 16.6 Environmental assessment conclusion ....................................................................... - 57 17 Reservoir Inundation and permanently Land Requisition ................................................ - 57 18 Investment estimate ............................................................................................................... - 60 19 Economic and financial evaluations ..................................................................................... - 60 19.1 Financing scheme ......................................................................................................... - 61 19.2 Calculation conditions ................................................................................................. - 61 19.3 Calculation results ....................................................................................................... - 61 19.4 Economic evaluation .................................................................................................... - 62 20 Legal Environment Analysis and Evaluation ...................................................................... - 62 20.1 Legal Environment ...................................................................................................... - 62 20.1.1 Current Situation of PPP/IPP Development in Indonesia .............................. - 64 20.1.2 Current Situation of the Development of Indonesian Electricity Legislation- 65
20.1.3 Stakeholders in PPP/IPP in Indonesia.............................................................. - 66 20.2 The Basic Legal Issues of the Project ......................................................................... - 66 20.2.1 Business Architecture......................................................................................... - 66 20.2.2 Developing Process ............................................................................................. - 67 20.2.3 Risk Evaluation .................................................................................................. - 71 20.2.4 Cooperation Mode ............................................................................................. - 71 20.2.5 Government Support ......................................................................................... - 71 20.2.6 Contract Structure ............................................................................................. - 73 20.3 Principal Legal Issues .................................................................................................. - 73 20.3.1 Investment Access .............................................................................................. - 73 20.3.2 Project Company................................................................................................ - 73 20.3.3 Land Acquisition ................................................................................................ - 74 20.3.4 Government Guarantees ................................................................................... - 74 20.3.5 Grid Connection ................................................................................................. - 75 20.3.6 Investment Incentives ........................................................................................ - 75 20.3.7 Environmental Protection ................................................................................. - 76 20.3.8 Natural Resources .............................................................................................. - 76 21 Conclusions ............................................................................................................................. - 77 22 Suggestions.............................................................................................................................. - 79 -

Executive Summary

0 Property List of Karama No.1 Hydropower Project


No. and name

Unit

Quantity or features

Upstream from of dam site

km2

5406

2.Duration of the hydrological data


series used in study

Year

30

100 million m3

145.3

m3/s

460.6

Design flood and discharge (P=


0.2%)

m /s

9897

PMF

m3/s

14026

10,000t

510.9

Remark

I Hydrology
1. Catchment area

3. Average annual runoff


4.Representative stream flow
Mean annual flow

5.Sediment
Annual average sediment inflow
Annual average sediment content

kg/m

0.29

Maximum flood level

m.

115.83

Normal pool level

m.

115.00

Dead storage level

m.

II. Project scale


1.Reservoir

Total reservoir capacity (reservoir

85.00
3

100 million m

14.45

100 million m3

10.52

capacity at maximum flood level)


Live reservoir capacity (from normal
pool level to dead storage level )
Dead reservoir capacity (capacity at

100 million m3

2.98

Service
20 years

2. Hydropower works
Installed capacity

MW

450

Annual average power generation

GWh

2412

5360

Plant factor
Design head

for

20 years

dead storage level)

Annual utilization hours

Service

0.61
m

Reservoir regulating pattern

71
Annual regulation

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Executive Summary

III.

Reservoir

inundation

and

permanent land use


1. Inundated land

hm2

8118

Including farm and garden land

hm2

5977

2. Planned relocated population

Person

8447

3. Houses in the inundated area

10,000m2

21.23

4. Woodland in the inundated area

hm2

1077

6. Land occupied by the Project

hm2

232

Including permanent land occupation

hm

51

IV. Main structures and equipment


1.. Water retaining works
Type

Roller compacted
concrete gravity dam

Foundation characteristics

Tuff, volcano breccia and


andesite, in blocks

Basic seismic intensity

Degree

Crest elevation

m.

117

Max. dam height

m.

119

Length at crest

m.

317

m.

93

No.-m

5-1422

Design flood discharge

m3/s

9897

Max. flood discharge

m3/s

13895

m3/s

179

m.

66.70

2. Water release structures


Spillway
Sill elevation
No. of spillway orifice - size (width
height)

3. Power intake
Design unit discharge
invert elevation
Type

Bell mouth

4. Power Houses
Type
Dimension of powerhouse (Length

Riverside intake structure


mmm

127.043.1559.70

m.

30.6

Width Height)
Setting elevation of turbine

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Executive Summary

5.Switchyard
Type

GIS

Size (length width height)


6.Main

mmm

79.21323.60

electro-mechanical

equipment
No. of hydraulic turbines

Set

Model

HL247-LJ-430

Rated head

m.

71

Rated output

MW

114.80

No. of generators

Set

Model

SF112.5-40/990

Unit capacity

MW

112.50

No. of main transformers

Set

Model

SSP10-135000/275,
3032x2.5%/15.75kV
Yn,dll,ONWF,Ud%=14%

V. Construction
1.Quantity of main works
Earth-rock excavation

10,000m3

Earth-rock backfilling

10,000m

5.09

Concrete and reinforced concrete

10,000m3

170.71

Reinforcement and steel

43076

Curtain grouting

m.

25292

Consolidation grouting

m.

80764

Person

3500

kW

18000

454.60

2. Required labor force


Peak labors
3. Construction power supply
power supply

Diesel
generator
unit

4. Access (highway)
Distance

km

59

5. Construction diversion method:

Tunnel diversion

6 Period of construction
Preparation

Year

1.7
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Executive Summary

Construction

Year

4.1

Total construction period

Year

4.5

VI. Economy indices


Energy production of the first year

GWh/year

Annual energy production


Total

Investment

GWh/year
excluding USD*1000

896
2412
1,335,516

transmission cost
Total transmission cost

USD*1000

63,412

1 Introduction
1.1 Background of the project
Karama No.1 Hydropower project is located on the Karma River in West Sulawesi Province of
Sulawesi Island in the east of Indonesia.
In West Sulawesi Province, the maximum load was 30MW, the electricity consumption was about
120GWh, the installed capacity of power stations (fuel-fired generator units) was only 5MW, and a
capacity of 25MW was in short in 2009. At present, the power grids of West Sulawesi Province and
South Sulawesi Province are connected through the 150kV power transmission wire. In South
Sulawesi Province, the maximum load was 565MW, the electricity consumption was about
3,012GWh, the installed capacity of power stations was only 542MW, and a capacity of 23MW was
in short in 2009. Due to the insufficient installed capacity, power is frequently cut off by pulling the
switch, and also some potential users are unable to purchase the electricity by accessing to the
power grid. According to prediction, the power grids of West Sulawesi Province, South Sulawesi
Province, Southeast Sulawesi Province and Central Sulawesi Province will be connected in 2013;
until 2020, the four provinces power grids will have a maximum load of 2,536MW, the electricity
demand will be 1,2879GWh, the total installed capacity of the power stations both constructed and
under construction will be 1,371.4MW, and a capacity of 1,164.6MW is in shortage. In order to
release the current tension situation of power grids and the demands of potential users, it is
necessary to construct the Karama No.1 Hydropower project.

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Executive Summary

1.2 Basic conditions of Karama No.1 Hydropower project


Karama River basin is located in the central-north part of West Sulawesi Province of Sulawesi
Island, Indonesia. It originates from the mountain in the east and flows westwards, and branch
Bonehau River runs into it at the middle reaches of the River. The river course has a length of about
175km, and the river fall is more than 600m. The catchment basin is covered by shrubs, with
vegetation coverage ratio of more than 96%. Karama River mouth is about 60km from Mamuju, the
capital of West Sulawesi Province.
Karama No.1 Hydropower project is located on the Karama River in West Sulawesi Province, about
2.2km downstream from the confluence of Karama River and its branch Bone Hau, and about 30km
in straight line from the estuary of Karama River. As proposed by professors from Hasanuddin
University in Karama River Development Program, the river will be developed in three stages, with
Karama No.1, No.2 and No.3 Hydropower Projects to be constructed from downstream to upstream
of the river.
In this report, the normal pool level of Karama No.1 Hydropower Project is set at El.115m, and thus
the previously planned No.2 and No.3 projects will be within the reservoir area of the No.1 project;
so it is necessary to re-locate these two previously planned projects.
To make the best use of the water potential of Karama River, three other stations are planned from
the upper end of the reservoir of Karama No.1 Hydropower Project above in this report. These 3
stations are Karama No.2, No.3, and No.4 Hydropower Projects, as shown in Figure 1. Karama
No.2 Hydropower Project is proposed at the upstream end of No.1 project, with the dam site at E
1193455 and S 22630. Karama No.3 Hydropower Project is proposed on a branch river, about
3km from Karama main stream and with the dam site at E 1193015 and S 22955. Karama No.4
Hydropower Project is proposed on Bone Hau, about 29km from Karama main stream and with the
dam site at E 1191420 and S 23645.
The purpose of Karama No.1 Hydropower project is to provide electric power to the power grids of
West Sulawesi Province, South Sulawesi Province, Southeast Sulawesi Province, and Central
Sulawesi Province, so as to release the electricity shortage situation of the power grids in the
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Executive Summary

above-mentioned four provinces and satisfy the demands for electric power and electric quantity
along with the increase of power grid load.
Except for supplying electric power and electric quantity to power grids, Karama No.1 Hydropower
project also can be used for fishing and tourism, providing more employment opportunities during
the construction period so as to promote economic development and flourishing in the project area.
At present, there is no highway passing through the dam site of the Karama No.1 Hydropower
project The road nearest to the dam site is located in Pokarawaan Village, 22km downstream of the
dam site. From Pokarawaan Village to Tarailu Town near the river mouth, there is a road available,
with the corresponding class IV road surface of 4-6m wide, and the bituminous concrete pavement
of about 3.5m wide but seriously damaged. There is a provincial highway from Tarailu Town to
Belang Belang Port (31km) and from Belang Belang Port to capital Mamuju (58km), with good
road conditions.
It is a tropical rainy climate in West Sulawesi Province, and the annual mean temperature is
25~27, with a small temperature difference. Due to the influence of monsoon, there are two
seasons in a year, including the dry season from June to October and the wet season from
November to May. According to the statistics rainfall data from 1983 to 2007 of the weather station,
the annual precipitation is about 2,000~4,200mm and the maximum precipitation is 4,173mm in
1995. In addition, the precipitation change is tiny in wet season and dry season, and the
precipitation in dry season accounts about 40% of the annual precipitation.

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Executive Summary

KARAMA River

KARAMA No.1

KARAMA River

KARAMA No.2

KARAMA No.3
Bone Hau River

Tandokratte

KARAMA No.4

Figure 1 Cascade Development of Karama River Basin

1.3 Reference Standard


The report is prepared mainly following the relevant hydraulic and hydroelectric standards in China. If the
authorities concerned in Indonesia put forwards special requirements in some aspect, the design would be
conducted following the Indonesian national standard or other recognized standard designed. The main Technical
Specifications and Design References is shown as follow:

(1)

Code on Compiling Feasibility Study Report of Water Resources and Hydropower Project
(DL/T5020-93);

(2)

Standard for Classification and Flood Control of Water Resources and Hydroelectric
Project SL252-2000
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Executive Summary

(3)

Standard for Flood Control GB50201-94;

(4)

Design Specification for Concrete Gravity Dams (SL319-2005);

(5)

Design Code for Hydropower House (SL266-2001);

(6)

Spillway Design Code (SL253-2002);

(7)

Design Specification for Sluice (SL265-2001);

(8)

Specification for Design of Hydraulic Tunnel (SL279-2002);

(9)

Specifications for Design of Steel Penstocks of Hydroelectric Stations (SL281-2003);

(10)

Specifications for Design of Surge Chamber of Hydropower Stations (DL/T5058-1996);

(11)

Design Specification for Intake of Hydropower Station (SD303-88);

(12)

Design Code for Concrete Face Rockfill Dams (SL228-98)

(13)

Specifications for Seismic Design of Hydraulic Buildings (SL203-97);

(14)

Code for Design of Hydraulic Reinforced Concrete Structures (SL191-2008);

(15)

Rule on Calculation of Volume of Work in Hydropower and Water Conservancy Project


(DL/T 5088-1999);

(16) PANDUAN PERENCANAAN BENDUNGAN URUGAN (JULI,1999)


VOLUME I (SURVAI DAN INVESTIGASI)
VOLUME II (ANALISIS HIDROLOGI)
VOLUME III (DESAIN PONDASI DAN TUBUH BENDUNGAN)
VOLUME IV (DESAIN BANGUNAN PELENGKAP)
VOLUMEV

(PEKERJAAN HIDROMEKANIK,
PELENGKAP)

INSTRUMENTASI

DAN

BANGUNAN

(17)ANALISIS DINAMIK BENDUNGAN BETON GAYA BERAT


(18)PEDOMAN OPERASI, PEMELIHARAAN DAN PENGAMATAN BENDUNGAN

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Executive Summary

BAGIAN 1 UMUM (MARET 2003)


BAGIAN 2 PENGELOLAAN OPERASI DAN PEMELIHARAAN (MARET 2003)
BAGIAN 3 SISTEM INSTRUMENTASI DAN PEMANTAUAN (MARET 2003)
BAGIAN 4 INSPEKSI KEAMANAN UNTUK PERALATAN HIDROMEKANIK DAN
ELEKTRIK (MARET 2003)
BAGIAN 5 OPERASI DAN PEMELIHARAAN PERALATAN HIDROMEKANIK DAN
ELEKTRIK (MARET 2003)
(19)PEDOMAN PENGISIAN WADUK (OKTOBER 2002)
(20) TATA CARA UNTUK PERSETUJUAN PEMBANGUNAN DAN PENGHAPUSAN FUNGSI
BENDUNGAN (OKTOBER 2002)
(21)ANALISI DINAMIK BENDUNGAN URUGAN
(22)PEMBANGUNAN BENDUNGAN URUGAN PADA PONDASI TANAH LUNAK

23 Recommended Practice for Fire Protection for Hydroelectric Generating Plants


(NFPA_851-2010)
(24) Other prevailing technical standards.

2. Project Survey
2.1 The mapping data available
For the whole project area, there are 18 sheets of topographic maps with the contour line of 25m
and the scale of 1:50,000 produced in 1991, as provided by West Sulawesi Province, Indonesia.
Four (4) order-2 GPS points provided by Administration of Land and Resources in West Sulawesi
Province have been collected.
Three (3) control points, namely BM0, BM1, and BM2 in Belang Belang wharf have been
collected.
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Executive Summary

2.2 Mapping work arrangement


2.2.1 Finished work at stage 1
The finished work at stage 1 includes the layout survey of the control points (plane and elevation).
(1) Plane and elevation system
The coordinate system for plane control points is Datum National-95 (DN-95), which is referred to
the WGS 1984 ellipsoid..
The elevation system is the elevation system of Muka laut di Mamuju,Sulawesi.
(2) Grid Deployment
By taking the order-2 GPS point as the numbering point, the order-3 GPS grid is surveyed along the
road from Mamuju Airport to Bonehau Village in the upstream and to Pecasi Village in the
downstream, which serves as the primary plane control network of the project.
Based on the order-3 grid, it is required to split the order-4 grid survey point in the dam site area,
borrow area and the line along the river course, and the backwater range in the proposed reservoir
area according to the topographic map and section surveying demands.
Use the order-3 closed standard line to connect all order-3 GPS control points, and arrange the
auxiliary standard line or closed standard line to connect all the order-4 GPS control points.
It is mainly the primeval forest and there is no available road on both river banks from Bonehau
River in Bonehau village to Karama River in Pecasi Village, moreover there are several high
mountains and deep valleys in the region, so the PGS satellite receiving effect is seriously affected,
it is very difficult to find an open area without high obstacle and tall vegetation to embed the GPS
markstones. Also it is unavailable to carry out geometrical leveling. Therefore, the order-3 network
and order-4 network will be arranged at the places where GPS satellite is not affected for receiving
signals along the river course, and based on this the plane line and triangulated height line are
arranged along the river course.
2.2.2 Finished work at stage 2
The finished work at stage 2 includes section survey and topographic survey.
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Executive Summary

(1) Section survey


According to the design demands, there are five survey lines for cross sections at the lower dam site,
including one dam axis in the middle, two dam axial lines at upperstream and two dam axial lines at
downstream.
There are six survey lines for cross sections at the upper dam site, including one dam axis in the
middle, three dam axial lines at upstream and two dam axial lines at downstream.
(2) Topographic map survey
1) Topographic maps for dam site area and powerhouse area for the lower dam site (scale:
1:1000);
2) Topographic maps for dam site area, diversion tunnel inlet and outlet, and powerhouse of the
upper dam site (scale: 1:1000);
3) Topographic maps for stone quarry and borrow area (scale: 1:1000)

2.3 Finished surveys


2.3.1 Achievements at stage 1

The finished survey achievements on layout of the control points (plane and elevation) at stage
1 are shown as follows:
Control surveying

Finished amount of work

order-3 GPS

33

order-4 GPS

24

order-3 standard

140km

order-5 plane line

30km

order-4 triangulated height line

30km

2.3.2 Achievements at stage 2


The achievements in section survey and topographic survey at stage 2 are shown as follows:
(1) Section survey
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Executive Summary

Five survey lines of cross sections for construction of lower dam site, with a total section length of
3.34km.
Six survey lines of cross sections for construction of upper dam site, with a total section length of
2.17km.
Scale for section mapping: 1:1000 (transverse); 1:100 (longitudinal)
(2) Topographic survey
S No.

Mapping position

Scale

Mapping area

Topographic map of the lower dam site

1:1000

2.67km2

Topographic map of the upper dam site

1:1000

2.45 km2

Topographic map of the inlet

1:1000

2.27 km2

Topographic map of the outlet

1:1000

1.22 km2

6# gravel yard

1:1000

1.13 km2

8# gravel yard

1:1000

0.45 km2

Rock block yard (I)

1:1000

0.78 km2

Rock block yard (II)

1:1000

0.54 km2

2.4 Residual survey work


(1) Find out and confirm the positions and data of Mamuju standard points and connect those points
into the projects line of standards. Now, a point has been discovered in the lawn of square in
front of Mamuju Airport, and it is required to further confirm whether such point is a usable
one in the next stage.
(2) The number of order-3 GPS from the junction between Bonehau and Karama River to the
backwater in the reservoir is about 8-10 Nos;
(3) The number of order-4 GPS in the reservoir area is about 30-40 Nos;
(4) Order-3 standard one-way distance is about 50km;
(5) The plane line is about 8km;
(6) The triangulated height line is about 8km;
(7) Topographic map of the reservoir area (scale: 1:5000);
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Executive Summary

(8) The number of survey lines in the large section of river course in reservoir area is about 66.

3. Study on hydrology and sediment


3.1 Overview of drainage basin
Kalama No.1 Hydropower Project is located on the downstream of Karama River in West Sulawesi
of Indonesia. The Karama catchment basin is located in the middle and north part of Luwu & Tana
Toraja area in West Sulawesi and about 60km away from the capital Mamuju. The overall terrain of
the drainage basin is high in the east and low in the west. The river originates from high mountains
in the east with the peak elevation more than 3300m. The overall flow direction of Karama River is
from east to west with many tributaries flow in. The largest tributary is the Bone Hau in the
downstream of the drainage basin which flows into the main stream at 2.0km of the damsite
upstream of No.1 Hydropower Station at Kalama. The drainage area above the damsite is about
5,406km2 with the length of 150km. The whole drainage basin surface is covered with forest shrubs,
with vegetation coverage more than 96%.
The damstie section of No.1 Hydropower Station at Karama has steep sides and rapid waterflow.
The damsite watercourse is about 100m wide with sporadic bedrock exposure of medium bedded
sandstone or basalt on sides near the water surface. The watercourse elevation around the damsite is
about 30m. At present, there is no large regulation project upstream the dam site. Karama River is
adjacent to Maloso River, Mamasa River and Kaluku River.

3.2 Basic data


(1) Flow data
There is only a Karama Hydrologic Station in Karama catchment areawhich located 25km
downstream of the proposed dam site. There are three hydrologic stations, namely Kaluku
Hydrologic Station, Mamasa Hydrologic Station and Maloso Hydrologic Station on adjacent rivers
nearer to the Karama dam site. The data include daily water level, actual measured highest water
level, actual measured water velocity, actual measured water area and actual measured water flow.
Karama Hydrologic Station: located near Karama River mouth with discontinued hydrologic data
from 1999 to 2006.
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Executive Summary

Kaluku Hydrologic Station: located on Kaluku River, south of Karama River and about 40km away
from Karama damsite with discontinued hydrologic data from 1999 to 2006.
Maloso Hydrologic Station: located on Maloso River, south of Karama River and about 110km
away form Karama damsite with discontinued hydrologic data from 1977 to 2006.
Mamasa Hydrologic Station: located on Mamasa River, south of Karama River and about 110km
away form Karama damsite with discontinued hydrologic data from 1979 to 2006.
PLN has provided the flow data of Bakaru No.1 HPP and Poso-2 HEPP. Bakaru No.1 HPP is on
constructed on River Mamasa, having a drainage area of 1080km2. It is located downstream from
Mamasa gauge station, where the flow records observed in 1979-1980 and 1982-2010 are available.
Poso-2 HEPP is located in the middle northern part of Sulawesi Island; the drainage area up to the
outlet of Poso Lake is 1754.7km2. The derived inflow data of Poso Lake between 1972 and 2005
are available.
(2) Data analysis of hydrologic station
From the actual measured water stage and discharge relations of plotted for each station, which
show that there is only few actual measured flow rate of low water level and there is no actual
measured flow rate of high water level. The actual measured water levels of Karama Station and
Kaluku Station are affected by tides due to nearer to the seaside, so it is not adequate to use them for
extension of the level-discharge relation and calculation of the river flow.
The stage and discharge relations are quite good for Mamasa Station and Maloso Station. The actual
measured flow rate is about 350m3/s and high water level of the stage and discharge relations are
extend according to actual measured stage and area relation, actual measured stage and velocity
relation, and actual measured stage and discharge relation. The observed data from Mamasa and
Maloso stations are much better with certain accuracy, so it is basically reliable.

3.3 Meteorology
Indonesia belongs to tropical rainy climate. Affected by eastern and western monsoon, it is
generally divided into the dry season and the wet season. From June to October, it is affected by the
eastern monsoon with small moisture content and forms the dry season. From November to next
May, it is affected by the western monsoon with large moisture content and forms the wet season.
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Executive Summary

According to the statistics of meteorological data of Majene Meteorological Station from 1983 to
2009, the annual precipitation has been 1530mm for many years. The mean annual precipitation of
dry season (June to October) is 359.4mm, accounting for 23.6% of the total year. The average
annual precipitation of wet season (November to next May) is 1170.6mm, accounting for 76.4% of
the total year. The largest annual precipitation is 2446mm occurring in 1988 and the smallest annual
precipitation is 905mm occurring in 1991. The average evaporation capacity has been 1748mm for
many years. The average annual temperature has been 27.6 for many years with the highest of
39.2 and lowest of 18.2. The average relative humidity has been 79% for many years. The
average wind speed has been 2.7m/s for many years with the maximum of 12.3m/s.

3.4 Runoff
3.4.1 Runoff of reference stations
(1) Runoff characteristics of reference stations
The two reference stations only have daily average water levels; therefore, daily average discharge
should be inferred on the basis of daily average water level and stage-discharge relation.
Daily average discharge of the two reference stations can be obtained on the basis of actual
measured daily average water level and extended stage-discharge relation of the two reference
stations. Data of 27 years (1979~2006, except 2001) of Mamasa Station are available and data of 16
years (1977~1979, 1983~1985, 1991~1996 and 2003~2006) of Maloso Station are available.
The average discharge of 27 years of Mamasa Station is 58.2m3/s and the annual runoff is 1,830
Mm3. The largest annual runoff is 3,230 Mm3 (in the year of 2002) and the smallest annual runoff
is 1,120 Mm3 (in the year of 1982) with the extreme value ratio of 2.89. The average discharge of
16 years of Maloso Station is 85.6m3/s and the annual runoff is 2,700 Mm3. The largest annual
runoff is 4,180 Mm3 (in the year of 2005) and the smallest annual runoff is 1,480 Mm3 (in the year
of 1991) with the extreme value ratio of 2.82.
(2) Runoff interpolation and extension of reference stations
Theres only 14 years actual measured runoff series of Mamasa Station and Maloso Station. So
theres no way to interpolate the missing annual runoffs and no other data available. Therefore, the
correlativity of annual runoffs in the same period of Mamasa Station and Maloso Station is
formulated to interpolate the annual runoff series of the two stations. The correlativity is quite good
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Executive Summary

with the coefficient of 0.84. The measured annual mean flow is applied for those missing runoff in
2001, and interpolation and extension will be made with each other for other missing data. After
interpolation, the 30-year (1977~2006) average discharge of Mamasa Station is 57.7m3/s with
runoff depth of 2004mm (2021mm for actual measured runoff depth in many years); the 30- year
(1977~2006) average discharge of Maloso Station is 86.3m3/s with runoff depth of 3368mm
(3341mm for actual measured runoff depth in many years).
(3) Flow at Bakaru No.1 HPP and Poso-2 HEPP
It is calculated the annual mean flow at Bakaru No.1 HPP is 63.0m3/s. After interpolation, a
complete flow series in 1977-2006 is available at Mamasa gauge station, with the mean annual flow
calculated at 57.7m3/s. Considering that the drainage area of Mamasa gauge station is 908km2, and
that the mean annual flow at Bakaru No.1 HPP is 63.0m3/s, this flow result calculated at Mamasa
gauge station is satisfactory. Poso-2 HEPP is located in the middle northern part of Sulawesi Island,
downstream from the outlet of Poso Lake. The drainage area of Poso Lake extends from south to
north, and the drainage area up to the outlet of Poso Lake is 1754.7km2. The mean annual inflow of
Poso Lake is calculated to be 140m3/s. Judging from the location and the distance from Karama
drainage area, the Mamasa and Maloso gauge stations are better suited as the reference gauge
stations in calculating the flow in Karama drainage area. Since the drainage area of Poso Lake is
located in the middle northern part of Sulawesi, not close to Karama drainage area, its flow series
will not be directly referenced in calculating the flow series of Karama drainage area.
3.4.2 Damsite runoff
The landform of Karama drainage area is high in the east and low in the west and its upstream
belongs to mountainous landscape, and its location is similar to Mamasa drainage area. Its
downstream belongs to the transition area from plains to mountain areas and it is similar to Maloso
Station drainage area. Therefore, the average value 2,686mm of average runoff depths of the two
stations is adopted as the value of Karama drainage area.
Taking the monthly runoff process of Mamasa Station as the model, the damsite is established
according to the area and runoff depth. Then the 30-year (1977~2006) runoff series of Karama
Hydropower Station can be inferred. The average annual discharge is 460.6m3/s and the average
runoff is 14,530 Mm3 for many years. In the 30-year (1977~2006) series, the largest annual
discharge is 817.8 m3/s of 2002 and the smallest is 282.5 m3/s in 1982 with the extreme value ratio
of 2.9. Runoff mostly occurs from December to next June which accounts for 70% of the annual
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Executive Summary

runoff. The other 30% occurs from July to November.


Based on the 30-year (1977~2006) runoff series of the damsite and drawing with P- frequency
curve, annual runoff calculation results can be obtained as shown in Table 3.4-1.
Table 3.4-1 Annual runoff frequency calculation results of Karama Hydropower Station
Designed value of different frequencies (one hundred million m3)

Statistical parameter
Average

Cv

Cs/Cv

10%

25%

50%

75%

95%

145.3

0.33

4.0

209.4

169.5

135.0

110.0

87.8

3.5 Flood
3.5.1 Probable maximum flood
The Probable Maximum Precipitation (PMP) is the greatest depth (amount) of precipitation, for a
given storm duration, that is theoretically possible for a particular area and geographic location. The
Probable Maximum Flood (PMF) is the flood that may be expected from the most severe
combination of critical meteorological and hydrologic conditions that are reasonably possible in a
particular drainage area.
PMP is estimated by the simple statistical Hershfield method using a series of the annual maximum
daily rainfall records. This method is widely applied in the basin where rainfall records are available
but other basic climatological records are hardly obtainable.
The preliminary computation process of the point PMP at the Kalumpang station is estimated to be
703 mm. The probable maximum flood (PMF) of 14.026 m3/sec.
3.5.2 Frequency flood
(1) Design flood at reference stations
Data series of Mamasa Station are adopted in analyzing damsite design flood because the Maloso
reference station only has short-time data series and is lack of statistic analysis of peak discharge
and period flood volume.
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Executive Summary

Years with instantaneous highest water levels of Mamasa Station are 1991, 1992, from 1995
through 2000, 2004 and 2006. The flood peak of these years can be obtained by instantaneous
highest water levels and stage-discharge relations. The flood peak of those years without
instantaneous highest water levels can be obtained by establishing the correlation of the concurrent
instantaneous flow and the corresponding daily mean flow.
It is analyzed that the flood hydrograph at the reference station is in general not more than 15 days.
Thus, the flood volume at certain period will adopt the annual maximum 24h, 3d, 7d and 15d
periods. The annual maximum 24h flood volume will be obtained based on maximum 1d flow
records to be magnified via the factor of 1.1. The factor of 1.1 will need to be verified later via the
measured data. According to the statistics, the 27-year flood volume series of 1979-2006 obtained
from Mamasa station is not continuous.
After analysis, the correlativity of peak discharge and period flood volume of Maloso Station and
Mamasa Station is quite weak. The data series of Mamasa Station cannot be extended. Therefore,
calculate the empirical frequency according to even sequence series on the basis of 27-year flood
peak and flood volume series of Mamasa Station. Draw the Figure with theoretical frequency curve
of P-III type.
See Table 3.5-1 for design flood results of Mamasa Station.
Table 3.5-1 Design flood results of Mamasa Station
Flood peak in m3/s and flood volume in 104m3
P (%)
Item

Average value

Cv

Cs/Cv
0.1

0.2

10

Qm

652

0.63

3352

3013

2235

1906

1479

1164

W24h

2750

0.64

14405

12935

9564

8139

6292

4937

W3d

6300

0.72

38099

33941

24466

20496

15406

11735

W7d

12000

0.75

76371

67845

48462

40367

30030

22620

W15d

18800

0.66

102191

91570

67268

57014

43772

34091

(2) Survey of historical flood


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Executive Summary

China GeZhouBa Group Company Limited (CGGC in short) has sent a group of professionals to
Indonesia from June 11 to June 28, 2011 for survey of the historical flood for Karama River, with
the investigation emphasized on the Karama stretch from Pedasi village to the upper dam site.
Pedasi village is located on the left bank of Karama River downstream of the dam site. According to
memory of a 48-year-old villager, the a severe flood in Karama river happened in 2004 when the
village was flooded with the flood depth of more than 1.0m, and he remembered the flooding traces
on a huge tree. The 2004 flood is the flood event all villagers experienced in recent years, so the
villagers verification of this historical flood event is reliable. According to his memory, this is the
maximum flood he ever experienced and no larger flood event than the 2004 flood was happened
from the elders in the village. It is then estimated that the 2004 historical flood is at the occurrence
frequency of one in 40-50 years. It is calculated with Manning formula that the flood peak in 2004
event reaches 6,110m3/s.
(3) Design flood at dam site
The design flood of Karama dam site is obtained by magnifying the design flood of Mamasa Station.
The area ratio index is 0.6667 for peak discharge and 1.0 for flood volume area. These area indexes
need to be verified via the actually measured data. Results of design flood are shown in Table 3.5-2.
Table 3.5-2 Design flood results of Karama Project
(flood peak in m3/s and flood volume in 108m3)
P (%)

Average
Item

Cv

Cs/Cv

value

0.1

0.2

10

20

Qm

2142

0.63

11011

9897

7342

6261

4857

3825

2836

W24h

1.64

0.64

8.58

7.70

5.69

4.85

3.75

2.94

2.17

W3d

3.75

0.72

22.68

20.21

14.57

12.20

9.17

6.99

4.95

W7d

7.14

0.75

45.47

40.39

28.85

24.03

17.88

13.47

9.40

W15d

11.19

0.66

60.84

54.52

40.05

33.94

26.06

20.30

14.82

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Executive Summary

3.6 Sedimentation
Currently there is no sediment measurement data. Catchment area of Bakaru reservoir near Karama
is 1080 km2, and mean annual sediment yield is 7.53 Mm3/year. According to the dam site
catchment area of 5406.09 km2, and reference on the sediment data of Bakaru reservoir, by means
of amplifying the area ratio, then the annual sediment yield of No.1 Hydropower Station at Kalama
can be calculated as 3.784 Mm3.

3.7 Stage-discharge relation


According to actual measured dam site and building section and watercourse section, hydraulics
Manning formula is adopted in calculating stage-discharge relation at the building. Stage-discharge
relation at the dam site is inferred by water surface profile method with the starting section of the
buildings.

3.8 Specialized hydrologic station planning


There is no reliable measured rainfall and runoff data in this catchment, so the engineering design is
made by calculating the data from the adjacent catchment. Thus the design results need to be
verified via the measured data in this catchment. Therefore, to meet the design requirement of the
Karama Hydropower Project, a specialized hydrological station need to be established nearby the
dam site of the Karama Hydropower Project, for river level, flow and rainfall observation.

4 Engineering geology
4.1 Investigation Brief
Primary Study Report of Hydropower Potential along Karama River (kegiatan kajian
pengembangan enrgi sungai Karama provinsi sulawesi barat) was prepared by two professors of
`rogram has been proposed and implemented during this investigation. Investigation methods
include recheck of regional linements, geological mapping, drilling, geophysical survey, exploratory
shaft/pit/trench, field and Laboratory Testing, and so on.

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Executive Summary

4.2 Regional Geology


4.2.1 Topography
Forms of landscape in regional area are strongly influenced by geological structure and raised or
fallen quickly. Generally, the topography characteristics of the study area consist of 2 (two) parts.
The western part is a lowland area, sloping and wavy which stretches from north to south, with
some swamp areas and estuary at places. And the eastern part is a wavy, hilly and mountain area,
amongst which the highest peak rises up to a level of about 3000 m
4.2.2 Stratigraphic Lithology
The complex strata of different period outcrop in the region, namely sedimentary rocks,
metamorphic, volcanic and intrusive rocks of age ranging from Mesozoic to Quaternary as
described below sequentially.
4.2.3 Geological Structure & Earthquake
The project area is tectonically located at a meeting region of two continental clusters, namely; the
continent of Asia and Australia. The main structural features are faults which trend NE to SW, and
NW to SE. In addition there are also bedding fault with highly variable dip direction. Number of
faults and varying dip directions indicate a multi-staged strong tectonic activity.
There are three major faults that control the flow and child-Karama River tributaries. There is a
north-south trending active fault, i.e. Palu-Koro fault. The shortest distances from the Fault trace to
the upstream dam site is about 100 km.
A regional fault extends across the reservoir area about 2.6km upstream of the upstream dam site,
having a trace length of some 40km. Thus, its activity and impacts on the project should be studied
and evaluated in the next stage.
According to Seismic Zoning Map of Indonesia (2010 version), peak ground acceleration (PGA) at
exceedance probability of 10% in 50 years varies from 0.20g to 0.25g, therefore, basic earthquake
intensity is recommended to be PGA=0.25g for current design of the proposed project,
corresponding to Grade VIII Zone.

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Executive Summary

4.2.4 Volcanic Activity


Since the project area is tectonically located at juncture of Asia and Australia plate, volcanic activity
is frequent due to strong plate motion. The mountain area in Sulawesi is generally the result of
ancient volcanic activity in Tertiary age. However, there is no evidence of active volcano found
within 100 km radius of the project site.
4.2.5 Hydrogeology
There are hot springs at about 25~27km east of the upstream dam site on formation Tmps, Kls,
Tmtv and Obt. A few hot springs are also found at 18km SW240of the upstream dam site on
formation Tmtv, which is the same formation at the dam site.

4.3 Geology in Reservoir Area


4.3.1 General Geology
The reservoir area topographically belongs to a moderate and low hilly area and descends from
southeast towards northwest. The highest mountain has a peak of about El. 1350m, located between
village Bonehau and Kalumpang
The strata outcropped in reservoir area are mainly composed of Cretaceous Latimojong Formation
(Kls), Eocene Toraja Formation (Tet), Middle Miocene Pliocene Formation Sekala (Tmps) and
Volcanic Rocks Tapaya (Tmtv).
The rocks mainly consist of sandstone, shale, claystone, conglomerate, basaltic lava and tuff. The
soil deposits in the reservoir area consist of alluvial sandy pebbles and gravel, clay and residual
laterite.
According to available regional geological data, a main fault extends across the reservoir area about
2.6km upstream of the upstream dam site, having a trace length of some 40km. Thus, its activity
and impacts on the project should be studied and evaluated in the next stage.
The occurrence of sedimentary rocks generally strikes in direction of NE50~60, which has a
small included angle to the majority of valley course in general, mostly dips towards NW, locally
SE at widely variable angles. The occurrence of volcanic rocks is similar with that of sedimentary
rocks.
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Executive Summary

The rock formations are less affected by tectonic activities and featured by sparsely spaced joints.
Sedimentary rocks generally show a monoclinal structure with localized anticlines and synclines.
The rainfall is rich in the project area. Groundwater at reservoir area includes fracture water in
bedrock and phreatic pore water in loose Quaternary deposition.
According to Location Map of Mineral Deposits in West Sulawesi Province, Indonesia, several
minerals have been reported in reservoir area of No.1 HEPP, such as coal, gold, iron and copper.
Rock mass at the reservoir area is dominantly acted by physical weathering. Stress-relief action is
prevalent on steep slopes flanking the tributary stream due to deeply and quickly cut of valleys.
Loose debris or landslide deposits are accumulated at the foot of slopes at where are occupied
mainly by claystone and argillaceous siltstone with less vegetable located at upstream of Village
Kalumpang.
4.3.2 Engineering Aspects
(1) Reservoir Seepage
Since the reservoir is surrounded by massive hills and mountains, as well as major tributaries on
reservoir rim have perennial flow and drain into Karama River, the reservoir is topographically
water tightness.Therefore, it is preliminarily concluded that the reservoir rim should be water tight.
Upstream of where the Bone Hau River enters, the reservoir is confined within slightly open valley
with generally gentle slopes, widely occupied by claystone, argillaceous siltstone and sandstone.
Though the natural slopes are generally stable, slumping and slipping may occur on where slope
mainly comprising claystone and argillaceous siltstone under actions of reservoir water and its
waves due to their weak strength and low weathering resistance. The slide area and stability of
slopes occupied by claystone and argillaceous siltstone may be affected adversely by the reservoir
impoundment and operation, and slopes of reservoir may become gentle under such geological
process.
Downstream of the confluence of stream Bone Hau with river , the valley is V shaped with
generally steep slopes, dominantly occupied by massive volcanic rocks and sed pyroclastic rocks
with rare discontinuities. Thus, the slopes are stable except local rock toppling/falling at places.
The other flanks of the reservoir to be submerged is composed of thinly to moderately bedded
sandstone, siltstone and silty claystone with poorly developed discontinuities, which steeply dips
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Executive Summary

and runs obique to the nullah in general, the bedding joint on left flank dipps towards the slope at an
angle steeper than the slope, while on right flank dipps inwards the slope, so the slopes are
generally stable.
(2) Inundation and Immersion
At the end of reservoir, the majority of land, forest and housing are on the terraces above the Full
Reservoir Level, however, they may be impacted by impoundment of reservoir due to uplift of
groundwater level.
(3) Solid Sedimentation
The Karama River, Bone Hau River and tributary gullies on both banks produce a considerable
amount of sediments, most of which originated from gravels and cobbles carried during flood
season as they are lying on their course, decomposed sandstone, claystone, volcanic rocks and
minor amount of rebuilt debris. However, since the reservoir rims are covered by dense vegetation,
the sedimentation volumes involved are insignificant compared with the total reservoir volume.
(4) Reservoir Induced Earthquake
As the pool water level will be raised about 80 m in front of the dam after the completion of the
project, state of ground stress would be considerable changed in reservoir and adjacent area.
Furthermore, a main fault extends across the reservoir area about 2.6km upstream of the upstream
dam site, which is compressive fault with weakly permeable. Therefore, it is preliminarily
concluded that there is low possibility to occur earthquake induced by reservoir, additional studies
would be necessary to conclusively address this issue based on analysis of regional faults activity.
(5) Impacts on Mining
Since mineral deposits in reservoir area are still in prospecting without yield so far, it is difficult to
evaluate the impacts of pool impoundment on minable mineral. It is recommended to refer
professional agency to conclusively address this issue.

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Executive Summary

4.4 Geology at Upstream Dam Site


4.4.1 Dam Site
(1) Engineering Geology Condition
The river flows in a V shaped valley. Grade I accumulational terraces are discontinuously
developed on right bank
Strata exposed at the dam site are pyroclastic rocks belonging to Talaya Formation (Tmtv) of
Middle Miocene Pliocene age, comprising massive to blocky moderately hard tuff, volcanic
breccias and andesite.
The recovered cores show tuff is friable property, especially in borehole ZKB3 at depth of
30.5~36.5m, 58.70~85.00m and 94.00~100.00m.
Gently dipped weak discontinuities can be observed on left bank at upstream of the proposed dam
axis and on the core of borehole.
As the slopes flanking the valley is rather steep, local rock toppling/falling exists as indicated by
cobble sized rock blocks and debris accumulated at the foot of slope, especially at the toe of left
bank.
Groundwater in the dam site includes phreatic pore water in loose Quaternary deposition and
fracture water in bedrock. Groundwater level observed in the boreholes is higher than the current
river level. Slightly weathered to fresh rocks are weakly permeable in general. Both river water and
groundwater falls into HCO3 - CaMg type, the groundwater on right flank has weak bicarbonate
erodibility to conventional concrete and weak erodibility to steel structure; while river water has
moderate bicarbonate erodibility to conventional concrete and weak erodibility to steel structure.
(2) Engineering Aspects
The rock mass presents in three Grades four sub kinds structures, i.e. blocky, very blocky,
interlocked and cataclastic structure in point view of Code for engineering geological investigation
of water resources and hydropower (GB50487-2008).
The foundation rocks are preliminarily classified as Class B and Class BIV considering
compressive strength, structure, weathering degree, integrity and characteristics of rock mass, wave
velocities of seismic survey and so on.
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Executive Summary

Rolled Concrete Gravity Dam


The loose overburden layer is incompetent for dam foundation and should be stripped wholly, i.e. it
is suggested to rest the upper abutments on middle or lower portion of moderately weathered and
unaffected by stress-relief action rocks, the other on slightly weathered to fresh rocks. Gently
dipped weak discontinuities can be observed both on upstream left bank and core samples. it is
preliminarily assumed that these gentle dipped discontinuities would affect the dam foundation
stability against sliding if lateral discontinuities also present. Further studies and investigations
would be necessary to conclusively address this issue.
Concrete Faced Rockfill Dam
The thick loose overburden layer can be used as dam foundation after suitable treatments being
taken to enhance its bearing capacity except the upper unit of silty fine sand on left terrace, which is
recommended to be stripped. Since the river deposits of sandy gravel is very highly to highly
permeable, seepage cut measures should be taken duly. Since the rocks on both flanks is highly
weathered and stress-relieved within limited depth, it is suggested to rest the concrete plinth on
lower portion of moderately weathered rocks and the rock embankment on highly weathered rocks
and /or river deposits of sandy gravel after stripping the top fine material. Though the persistence of
fine sand layer is unkown, liquefaction potential under larger earthquake should be considered
The both abutments are of high slope. Though the natural slopes are generally stable, attention
should be paid duly to the adverse factors, such as construction disturbance, destruction of
vegetation, actions of reservoir water and its waves and rainfall, especially prolonged dense rainfall.
4.4.2 Waterway System
The area is mainly covered with talus debris soil and thick vegetation, scattered with tuff and
volcanic breccias outcrops. The underlying rocks should be mainly of moderately strong sound tuff
and volcanic breccias, blocky to very blocky structured with sparsely to moderately spaced joints.
The headrace tunnel will intersect volcanic rocks mainly of moderately hard tuff and breccias. The
rock mass is commonly sound with gentle dipped discontinuities, jointed at places. The
groundwater level is rather high and the majority of the tunnel would be excavated below the
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Executive Summary

groundwater level. Given the influenced factors, stability of surrounding rocks along the tunnel
section is fair mostly falls into Class III, while at inlet and outlet portal is poor to very poor into
Class IV~V.
The natural slopes at the proposed powerhouse area is relatively steep, thus, slopes at the back and
left flank of powerhouse will be high after excavation. Since the project area has rich rainfall, it
would have significant effect on stability of slope and should be taken into consideration in design.

4.5 Downstream Dam Site


(1) Engineering Geology Condition
The gorge of Karama River reaches about 10km from the upstream site to downstream site. The
river flows approx. northward through the downstream site in a V shaped valley. Grade I
accumulational terraces are discontinuously developed on right bank.
Strata exposed in this dam site are sed pyroclastic rocks belonging to Talaya Formation (Tmtv) of
Middle Miocene Pliocene age, comprising sed volcanic breccias composed of andesite basalt,
sed tuff with lower strength, sandstone and argillaceous siltstone at upstream flanks, with dolomitic
limestone intercalations at downstream flanks. Besides, basalt, pyroxene andesite seams and
Quaternary loose deposits also present locally.
Rock formations at the dam site show a monoclinal structure with local variety. The volcanic
breccias is massive to blocky without clear bedding. Slickenside is observed on bedding and joint
plate.
Rock mass at the dam site is dominantly undergone physical weathering action. The depth of highly
weathered zone and moderately weathered zone is variable with rock type and location.
As the slopes flanking the valley is rather steep, local rock toppling/falling exists as indicated by
cobble sized rock blocks and debris accumulated at the foot of slope, especially at the toe of left
bank.
Groundwater in the downstream dam site includes phreatic pore water in loose Quaternary
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Executive Summary

deposition and fracture water in bedrock. Groundwater level is higher than the river level.
The permeability of slightly weathered to fresh rock mass varies mildly, belongs to weakly
permeable in general and slightly permeable locally. The permeability of rock mass at shallow depth
is controlled by weathering and stress-relief action.
Both river water and groundwater falls into HCO3 - CaMg type, the groundwater on right flank has
no erodibility to conventional concrete and weak erodibility to steel structure; while river water has
weak bicarbonate erodibility to conventional concrete and weak erodibility to steel structure.
(2) Engineering Aspects
The rock mass presents blocky to very blocky in two Grades five sub kinds structures, i.e. blocky,
very blocky, thickly bedded, intermediately bedded and thinly bedded structure in point view of
Code for engineering geological investigation of water resources and hydropower (GB50487-2008).
The rock mass are preliminarily classified as Class CIII, and CIV considering compressive strength,
structure, weathering degree, integrity and characteristics of rock mass, wave velocities of seismic
survey and so on.
Rolled Concrete Gravity Dam
The loose overburden layer is incompetent for dam foundation and should be stripped wholly. The
underlying slightly weathered to fresh rocks are sound but weak, significant settlement and
deformation should be expected under the applied load due to their low strength.
Concrete Faced Rockfill Dam:
The thick loose overburden layer can be used as dam foundation if suitable treatment is taken to
enhance its bearing capacity. Since the river deposits of sandy gravel is very highly to highly
permeable, seepage cut measures should be taken duly. Since sand layer and/or lenses may present
in river deposits, adverse effects should be expected on dam foundation stability against sliding in
case that the rockfill dam is based on river deposits. Since the rocks on both flanks is highly
weathered and stress-relieved within limited depth, it is suggested to rest the concrete plinth on
lower portion of moderately weathered rocks and the rock embankment on highly weathered rocks
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Executive Summary

and /or river deposits of sandy gravel after stripping the top fine material. Though the persistence of
fine sand layer is unkown, liquefaction potential under larger earthquake should be considered in
the case that the rockfill dam is based on river deposits.
Given the distribution of the valley and exposed rock strata, deep depression zone can not be
excluded so far and should be further investigated in next stage.
The both abutments are of high slope. Though the natural slopes are generally stable, the slopes are
composed of soft rock mass, attention should be paid duly to the adverse factors, such as
construction disturbance, destruction of vegetation, actions of reservoir water and its waves and
rainfall, especially prolonged dense rainfall.
4.5.1 Power System
The area is mainly covered with talus debris soil and thick vegetation, scattered with tuff and
volcanic breccias outcrops. The underlying rocks are mainly composed of sandstone, siltstone and
argillaceous siltstone at intake portal area, of tuff and volcanic breccias along twin tunnels, and of
volcanic breccias at powerhouse area. Though the integrity of rock mass is good to fair with
sparsely to moderately spaced joints, it is weak with less strength.
Since rock mass at the intake portal area is composed of strong sandstone and weak siltstone and
argillaceous siltstone, differential settlement problem will be raised under the applied loading.
The headrace tunnel will intersect volcanic rock beds mainly of tuff and breccia. The rock mass is
commonly weak with fair to good integrity, jointed at places. The groundwater level is rather high
and the majority of the tunnels would be excavated below the groundwater level. Fortunately the
rock mass should be weakly permeable in general.
Since the rock formation at the powerhouse area generally strikes northeasterly and dips
northwesterly, it runs outwards and will be adverse for slope stability of the back slope of
powerhouse.

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4.5.2 Sluice Tunnel


The underlying rocks at inlet portal and upper section of tunnel are mainly composed of hard
sandstone, weak siltstone and argillaceous siltstone, middle section of tuff and volcanic breccias,
and lower section of dolomitic limestone and tuff. Though the integrity of rock mass is good to fair
with sparsely to moderately spaced joints, it is weak with less strength except moderately strong
sandstone and dolomitic limestone. Differential settlement problem is expected for inlet portal
structure. Stability of surrounding rocks along the tunnel sections is poor in general, mostly falls
into Class IV.
4.5.3 Spillway
The area is mainly covered with talus debris soil and thick vegetation, scattered with rock outcrops.
Though the integrity of rock mass is good to fair with sparsely to moderately spaced joints, it is
weak with less strength and with low bearing capacity with respect to moderately strong sandstone
and dolomitic limestone. The stability problem of the left high cut slope hould be expected.

4.6 Construction Material


No road/path track leads directly to the proposed dam sites, borrow and quarry area. Thus, the only
available river traffic is small sized boat.
Since no investigation work had been performed previously for construction material, different
areas near the project sites were visited thoroughly and the suitable locations were identified and
selected for preliminary investigation of construction material during this investigation.
Totally 11 borrow areas (numbered 1

to 11 ) on terraces and flood plains and 2 quarry areas

( numbered Q1 and Q2) on bank slopes were identified, amongst which borrow area 6and 8,
quarry area Q1 and Q2 were selected for preliminary investigation.
Main borrow areas are located on Grade I terraces about 5~6km downstream of the lower site, at
where the upper unit of silty clay, clayey silt and fine sand is several meters thick, and the lower
unit of gravels, pebbles, course sand with cobbles is mostly under the groundwater level. Quarry
area of limestone is located about 1.5~2.5km downstream of the lower site. As limestone presents as
sandwiched layers at steep dipping angle, each of thin thickness, covered by conglomerate with
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variable thickness, it would be difficult for excavation. Quarry area of andesite is located about
2.5km downstream of the upper site, at where the unusable cover is estimated to be rather thick that
should be further verified in next stage so as to determine the economic effect of exploitation. The
materials in selected areas can basically meet the demand both in quantity and quality.

5 Seismicity
5.1 Tectonic Features
The project area is tectonically located at a meeting region of two continental clusters, namely; the
continent of Asia and Australia. The main structural features are faults which trend NE to SW or
NW to SE. In addition there are also bedding fault with highly variable dip direction. Number of
faults and varying dip directions indicate a multi-staged strong tectonic activity.
There is a north-south trending active fault, i.e. Palu-Koro fault, runs across northern Sulawesi. It is
a strike-slip fault, dips NE50, with a length trace of 459km and annual slip rate of 30~44mm. The
shortest distances from the Fault trace to the upstream dam site is about 100 km.
There are three major faults that control the flow and child-Karama River tributaries. A section of
Karama River runs along a fault at upstream of Kalumpang. Two faults control the flow of the
biggest tributary stream Bone Hau River on upstream and downstream reaches respectively.

5.2 Seismic Activity


The Palu-Koro Fault commonly yields earthquake with magnitude of more than 6.0 Mw, maximum
magnitude of Mw =7.94. As shown by data searched on Internet, a earthquake reported on March
1985 of magnitude 5.1 at a focal distance of 33km was occurred on a fault trending across the
reservoir area about 2.6km upstream of the upstream dam site.
According to Seismic Zoning Map of Indonesia (2010 version), peak ground acceleration (PGA) at
exceedance probability of 10% in 50 years varies from 0.20g to 0.25g, therefore, basic earthquake
intensity is recommended

to be PGA=0.25g for current design of the proposed project,

corresponding to Grade VIII Zone.


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Executive Summary

6 Study on power market


6.1 Design target year
The base year is 2009, the design target year is 2020 and the predicted load is in 2025.

6.2 Power supply scope


According to forecasting, in target year 2020, the maximum load of power grade of West Sulawesi
Province will be 108MW and it cannot absorb electricity and electric quantity of Karama NO.1
hydropower station. In line with opinions of Indonesia State Power Company (PLN), power supply
scope of Karama NO.1 hydropower station covers West Sulawesi Province, South Sulawesi
Province, Southeast Sulawesi Province and Central Sulawesi Province in Sulawesi Island.

6.3 Existing problems for power grid


At present, the power grid of West Sulawesi Province, South Sulawesi Province, Southeast
Sulawesi Province and Central Sulawesi Province has no networking. Fast power demand and slow
increase in electric energy production leads to serious power crisis, especially in South Sulawesi
Province. Because installed capacity of power plants is not enough, not only power grid of four
provinces suffers frequent power rationing, but also some potential users cannot be connected into
the grid due to lack of power.

6.4 Load forecasting


The forecasting of power grid load is based on 20102019 load forecasting results of power grid of
each province forecasted in 20102019 planning of Indonesia State Power Company (PLN) (June,
2010) and adopts the method of average growth rate to forecast the maximum load and electricity
consumption in 2020 and 2025. According to Power planning of Indonesia, the annual growth rate
of maximum load and annual electric energy production will significantly slow down after 2014.
Annual growth rate in 20192025 forecasted this time is based on average annual growth rate in
20142019. In line with forecasting, after power grid of the four provinces interconnect the
network, in 2020, the maximum load is 2536MW (simultaneity is 1), and electric energy production
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is 12879GWh and the amount of hours using the maximum load are 5078 hours; in 2025, the
maximum load is 4043MW (simultaneity is 1), and electric energy production is 20680GWh and
the amount of hours using the maximum load are 5115 hours.

6.5 Load curve


(1) Annual load curve
According to investigation, the change in power system load of Sulawesi Island through a year is
not significant; the maximum load of a year occurs in October and November and the maximum
load in February is lowest and 92% of that in October and November.
(2) Daily load curve
According to investigation, there is no obvious change in daily load curve in each month of
Sulawesi Island. In a month, there is obvious difference in load of working days and festivals and
holidays; the maximum load of festivals and holidays is 85.7% of that of working days. Based on
the daily load process, the maximum load of a day occurs at 7:00pm and the minimum load of a day
occurs at 4:00am.
The load curve of design target year adopts the method of modification of historical load curve. It is
forecasted that the average load rate of working days is 0.649; the minimum daily load rate is 0.45;
the average load rate of holidays is 0.622; the minimum load rate is 0.43.

6.6 Development and planning of power supply


The installed capacity of power plants of West Sulawesi Province, South Sulawesi Province,
Southeast Sulawesi Province and Central Sulawesi Province in 2010 is 797.2MW; the installed
capacity of power plants under construction is 574.2MW; the installed capacity of power plants
under negotiation is 390MW; the installed capacity of power plants planned to build is 2152.7MW.
The total of installed capacity of these power plants is 3914.1MW, where the total of installed
capacity of power plants built and under construction is 1371.4MW and the installed capacity is
1761.4MW plus power plats under negotiation.
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6.7 Preliminary power balance of power system


According to forecasting of the four provinces and analysis of installed capacity power plants built
and under construction, considering that power grid of power plants built and under construction in
four provinces is under the state of lack of electricity in 20152025, and that lacking electricity of
power grid in 2018 is 340.6MW and that in 2020 is 773.6MW, it is urgently necessary to newly
build power plant to meet increasing demands for load development.
The installed capacity of 1# hydropower station of KARAMA River is 450MW. After 4
hydroelectric generating units with single-machine capacity of 112.5MW are installed, the average
112.5MW of the power plant for years will be 2412GWh. In line with engineering construction
schedule, after the power plant with 4 generating units is built and connected to power grid of West
Sulawesi Province, South Sulawesi Province, Southeast Sulawesi Province and Central Sulawesi
Province, it will relieve the situation that power grid is lack of electricity and electric quantity.

7 Project Layout Selection


Investigation and design is made for two dam sites as proposed at the planning stage. In
consideration of the geological conditions, the upper dam site will adopt the RCC dam scheme or
the concrete faced rockfill dam scheme, whereas the lower dam site will adopt the concrete faced
rockfill dam scheme or the asphalt cored rockfill dam scheme. After the technical and economic
comparison, the upper dam site is recommended with the RCC gravity dam scheme.
The RCC gravity dam for the upper dam site will be designed with the crest elevation of
El.117.00m, the lowest dam base elevation of El.-2.00m, maximum dam height of El 119m and
crest length at 317m. The RCC gravity dam is divided into 14 monoliths, including 1#~6#
monoliths of the left bank retaining monoliths, 7#~11# monoliths of the spillway monoliths and
12#~14# monoliths of the right bank retaining monoliths.
The non-overflow dam monoliths are 14m wide at crest. A 1.2m high parapet is provided with the
parapet top elevation of El.118.20m. The upstream surface of the dam body is battered at El.64.0m,
with the batter slope of 1:0.15. The downstream dam face below El.106.388m is sloped at 1:0.85.
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The crest of spillway weir (overflow monoliths) is at El.93.0m, with the net bay width of 14m. The
weir surface uses WES curve, followed by a straight line section with slope ratio of 1:0.85, and the
downstream of the straight line section is connected with a 30m-radius ogee section. Energy
dissipation by trajectory jet is applied. The weir crest working gate is adopted as steel radial gate,
and the maintenance gate is adopted as stop-log gate.
The headrace system is provided at the left bank with a power intake integrated in the dam. The
invert and the crest of the power intake are at El.66.70m and El.117.00m respectively. There are two
headrace tunnels, each of which would be bifurcated to feed two units. In each headrace tunnel, the
trunk is the trunk is 579.02m long and the branches are 60.72m and 50.95m long respectively. The
trunks have a diameter of 10.8m, and their centerlines are spaced at an interval of 40.60m.
The river bank powerhouse is about 550m from the dam axis, and the dimensions of the main
powerhouse are 127.0043.15m (lengthwidth). There are four 112.5MW Francis turbine generator
units installed, with a total installed capacity of 450MW. The powerhouse complex consists of the
main powerhouse, auxiliary powerhouse, switch station and downstream tailrace channel.

8 Project scale
8.1 Selection of normal pool level
It is required to mainly consider technological and economic indicators such as kinetic energy
indicator, reservoirs flooding, hub investment and economic indicator when selecting normal pool
level of Karama No.1 hydropower station. For normal pool level of reservoirs, five schemes are
compared, i.e. 100m, 105m, 110m, 115m, and 120m; the level of dead water of reservoirs is
calculated according to the ratio of drawdown depth and maximum waterhead, i.e. 40%; and
corresponding levels of dead water of reservoirs are 76m, 79m, 85m, and 88m.
(1) In terms of kinetic energy indicator, the higher the normal pool level of reservoirs is, and the
larger the adjusting capacity of reservoir is; and guaranteed output and electric energy production of
power plant are more and the kinetic energy indicator is better.
(2) In terms of reservoir flooding investment and project investment, with increasing normal pool
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Executive Summary

level, population needing migration, flooded cultivated land, forest land, land acquisition and
migration resettlement subsidies and project investment are more.
(3) Seen from the perspective of economic internal rate of return (EIRR), when the normal pool
level increases from 100m to 115m, EIRR increases from 11.84% to 13.74%, when the normal pool
level increases from 115m to 120m, EIRR decreases from 13.74% to 13.71%.
To sum up, though the higher the normal pool level is, the better the kinetic energy index will be
but because when the normal pool level lifts from 115m to 120m, the population, land requisition
and residents-relocation grants as well as project investment influenced by the reservoir will be
greatly increased and the economic index of normal pool level scheme of 115m will be the best,
therefore, the recommended reservoir normal pool level will be 115m.

8.2 Selection of level of dead water


It is necessary to consider the requirements of flooding depth of power tunnel, minimum waterhead
requirements of generator units of power plants as well as kinetic energy indicator requirements of
power plants when selecting level of dead water of reservoirs.
The lower level of dead water of reservoirs, the larger adjusting capacity of reservoirs is and the
larger guaranteed output of power plants is, but average electric energy production of power plants
for ages decreases slightly. In order to get more guaranteed output and adjusting capacity of
reservoirs, recommended level of dead water of reservoirs is 85m. The water level can meet
requirements of flooding depth of power tunnel and requirements of water turbine for the range of
waterhead.

8.3 Selection of installed capacity


Karama No.1 hydropower station is connected to power grid of West Sulawesi Province, South
Sulawesi Province, Southeast Sulawesi Province and Central Sulawesi Province after it is built and
undertakes the task of adjusting peaks in power grid.
In line with recommended normal pool level 115m, level of dead water 85m, five schemes are
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Executive Summary

compared, i.e. 300MW, 350MW, 400MW, 450MW, and 500MW. It is required to select installed
capacity mainly in terms of kinetic energy indicator, project investment and economical efficiency
of supplementing installed capacity.
(1) In terms of kinetic energy indicator, the larger the installed capacity of power plants, the larger
electric energy production is, but the rate of increase in electric energy production, operation hours
of installed capacity and operation hours of supplemented kilowatts gradually decrease.
(2) In terms of project investment, the larger the installed capacity of power plants, the more project
investment is.
(3) Seen from the perspective of economic internal rate of rate (EIRR), when the installed capacity
increases from 300MW to 450MW,

EIRR increases from 12.61% to 13.74%, when the installed

capacity increases from 450MW to 500MW,

EIRR decreases from 13.74% to 13.71%.

The above economic index shows that, the installed capacity scheme of 450MW is the best,
therefore the recommended station installed capacity is 450MW, annual average generation is
2,412GWh, and the annual utilization hours is 5,360 hours, the utilization rate of the equipment is
0.61.See Table 8.3-2 for the annual power output process of the station representative of good,
normal and poor years.

9 Recommended project arrangement


9.1 Project ranking and flood control standards
Karama hydropower project is at the first level of the planned 3 cascade hydropower stations in
Karama River basin. The drainage area above the dam site is 5,406km2; annual average flow is
460.6m3/s and annual average runoff is 14.53 billion m3. Karama No.1 hydropower project is
mainly for power generation and the total reservoir capacity is 1.445 billion m3 and normal pool
level is El 115.00m. The total installed capacity is 450MW. According to Classification and Flood
Control Standards for Water Resources and Hydropower Project (SL252-2000), the project is
ranked to be Grade I and the project scale is large (1). The main structure of the dam is categorized
as Grade I whereas the headrace tunnel and powerhouse are categorized as Grade II. The minor
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important structures such as retaining wall are categorized as Grade III, the temporary hydraulic
structures are categorized as Grade IV. In line with the seismic zoning map of Indonesia (2010
version), the seismic dynamic peak acceleration with probability of more than 10% in the project
zone in fifty-year reference period is between 0.20g and 0.25g (Figure 2.5-3), equivalent to VIII
degree of basic earthquake intensity. Design peak value of seismic ground motion for main
constructions is 0.3g.

9.2 Water retaining structure


Water retaining structure is a roller-compacted concrete gravity dam mainly composed of the left
bank non-overflow dam section, spillway section and right bank non-overflow dam section.
The crest elevation of roller-compacted concrete gravity dam is El 117.00m; the lowest dam base
elevation is El -2.00m, the maximum dam height is El 119m and the crest length is 317m. The dam
is divided into 14 sections, namely the 1#~6# left bank non-overflow dam section, with the length
of 25m for sections 1#~3#, the length of 23m for section 4# and length of 21m for sections 5#~6#.
The 12#~14# dam sections are right bank water retaining sections with the crest length of 22m each.
The upstream surface of the dam body is battered at El.64.0m, and the batter is sloped at 1:0.15.
The downstream dam face below El.106.388m is sloped at 1:0.85. The non-overflow monoliths are
14m wide at crest. A 1.2m high parapet is provided on the dam crest, with the parapet crest at
El.118.20m.
7#~11# dam sections are spillway sections with the uniform crest length of 22m each. The total
length of spillway section is 110m, with the overflow weir crest elevation at El 93.0m and the
upstream dam face designed at the same level to that of the non-overflow dam. The weir surface
uses WES curve, followed by a straight line section with the slope ratio of 1:0.85, and the
downstream of the straight line section is connected with a 30m-radius ogee section.

9.3 Water release structures


Water release structure adopts the spillway discharging flood manner. 5 spillway bays are provided
as spillway sections 7#~11# in the middle of the river bed with the section length of 22m each and
with five 14m22m (width x height) bays. The total clear width of the weir is 70m and the total
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length of spillway sections is 110m.


The clear dimension of each spillway bay is 14m22m (width x height) and the elevation of dam
crest is 93.0m. spillway weir surface adopts WES weir curve, and the equation y0.0361x1.85. The
1: 0.85 straight line section is connected to the weir face; the 30m-radius flip bucket is connect to
the downstream of the straight line section, with the flip bucket top elevation at the tail of 58.0m
with 30 shot angle.
Energy dissipation adopts the way of energy dissipation by trajectory jet. The radium of the flip
bucket is 30m; the top elevation of the flip bucket at the tail is 58.0m with 30 shot angle. The
design flood-discharging horizontal length is 97.87m and maximum flood-discharging horizontal
length is 104.70m.

9.4 Diversion power generation system


Diversion system is composed of water intake and water diversion tunnel with one tunnel serving
two machines; there are two diversion tunnels; the length of trunk tunnel is 579.02m; and the length
of branch tunnel is 60.72 and 50.95m respectively.
Water intake adopts the dam-type water intake. The base plate elevation is El 66.70m; the intake
tower elevation is El 117.00m.
Diversion tunnel adopts a round section; the tunnel is preliminarily planned as 10.8m in diameter;
and the gap between tunnel axis is 40.60m. The tunnel alignment adopts a straight-through
arrangement. The maximum diversion flow in a single tunnel is 358.0m3/s; and corresponding
maximum flow rate in the tunnel is 3.91m/s.The diameter of branch tunnel is 6.4m with the
corresponding maximum flow rate of 5.56m/s in the tunnel.

9.5 Powerhouse and switching station


Powerhouse is designed as river bank diversion type powerhouse. Four Francis turbine-generator
units with total capacity of 450MW are installed in the powerhouse. Powerhouse complex is
composed of main powerhouse, auxiliary powerhouse, switch station and downstream tailrace
canal.
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Executive Summary

The three-storey auxiliary powerhouse is located at the left side of the main powerhouse with a
length of 51.7m and awidth of 24.6m.

9.6 Treatment of foundation and side slope


9.6.1 Foundation treatment
(1) Foundation excavation
The geological survey data show that the formation lithology of bedrock at the dam site area is
mainly tuff, volcanic breccia and andesite with massive structure and the joint is relatively
developed. The rock mass that appears above the surface of the dam site area is mainly weakly
weathered and fully weathered or strongly weathered rock mass to be found locally. The thickness
of weathered zone increases with the increase of elevation; the weakly weathered zone below the
dam abutment level is thin while it is relatively deep above the dam abutment level. The thickness is
generally 0.5-1.5m for strongly weathered zone and 1-8m for weakly weathered zone.
In view that the dam foundation of river bed is with high requirements for structures, the weakly
weathered rock mass in the river bed at dam site will be excavated to make the dam foundation
directly located on the slightly weathered and fresh rock mass; along with the rising of elevation,
the weathering depth of rock mass on both sides increases and so does the excavated volume, which
would will harm the stability of side slopes on both banks after excavation, especially the dam
abutments on both banks. According to the requirements on buildings and in combination with the
actual geological condition, the foundation base plane will be elevated appropriately and the base
plane be excavated to the bottom of the weakly weathered zone in principle.
(2) Foundation seepage proofing
Dam foundation seepage proofing is composed of the impervious curtains for dam foundation and
both banks. Drilling shows that the permeable rates below the drillhole depth of 30m are all less
than 10Lu and most permeable rates below drill hole depth of 60m are all less than 5.0Lu, but they
are all more than 3.5Lu within 100m. Therefore, the foundation seepage proofing adopts suspended
impervious curtain, which is arranged in two rows with row spacing of 3m and in the form of
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quincunx; the hole depth of main impervious curtain adopts 80m according to 0.7 of the dam height
and that of the auxiliary impervious curtain adopts 55m.
(3) Foundation drainage
Set a line of drainage holes linking downstream on downstream side of grouting gallery to reduce
the seepage pressure of dam foundation. The main drainage holes are 2.5m in hole spacing and 25m
in hole depth. Set foundation drainage holes with hole spacing of 2.5m and hole depth of 7m at each
downstream drainage hole and gap of the dam foundation.
(4) Foundation consolidation grouting
In order to strengthen the integrity, increase the elastic modulus and improve the impermeability of
bed rock, grouting treatment shall be carried out for the whole dam foundation plane. The hole
spacing and row spacing are 3m and hole depth is 7m for consolidation grouting.
9.6.2 Side slope treatment and protection
In combination with the geological condition of excavation site, the permanent side slope formed by
excavation shall be treated according to the following principles:
(1) The cover layer of bank slope shall be excavated according to the slope of 1:1.25; set a riding
way of 2-4m every 10m, set a barricade locally and pave a three-dimensional vegetation net on
the surface layer. The excavation slope of alluvial river bed sand gravel stratum shall be 1:1.5
and set a riding way with width of 2-4m every 10m.
(2) Excavation slope of rock: the excavation slope shall be designed according to the geological
condition of side slopes of different rock stratums and construction experience and for
construction convenience, generally a riding way with width of 3m is set every 15m. the
strongly weathered rocks shall be excavated according to 1:1.5, weakly weathered rocks
excavated according to 1:0.7 and slightly weathered rocks excavated according to 1:0.5.
The weakly weathered rocks shall be sprayed with plain concrete with thickness of 10m on the
surface for protection and the strongly weathered rocks shall be sprayed with concrete of 15cm
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thick on the surface with a net hung; for local breaking areas, adopt anchor rods for reinforcement
treatment and PVC drainage pipes with spacing of 3m3m are provided where the concrete is
sprayed.

9.7 Safety monitoring design


According to the Technical Specification for Concrete Dam Safety Monitoring (DL/T 5178-2003)
and the relevant regulations and also in combination with the geological conditions of this project
and structural characteristics of the hydraulic structures, the safety monitoring system is mainly
focused on displacement and deformation of the dam body, left and right dam abutments, diversion
tunnel, power house and high slope and the monitoring of the uplift pressure and seepage volume
related; in combination with the hydro-meteorological and hydraulic observation, the monitoring
design is mainly focused on safety monitoring of dam during the operation period and meanwhile
taking into account the safety monitoring during construction period, with the principle of
monitoring pricinpally and check design subordinated.
This project is categorized as Class I project, with the main structures including the concrete dam,
diversion tunnel and power house, etc. According to Technical Specification for Concrete Dam
Safety Monitoring and other relevant regulations, the monitoring items will include the structural
surface deformation monitoring, dam stress and strain and temperature monitoring, uplift pressure
monitoring of the dam body, dam foundation and power house foundation, dam foundation seepage
monitoring, bypass seepage monitoring, high slope monitoring, upstream and downstream water
level monitoring, environment monitoring and patrol inspection etc.
In consideration of the characteristics of a large scale, more items to be observed, poor working
conditions and heavy labor tasks on observation, the distributed automatic data acquisition network
system will be adopted in order to promptly obtain various kinds of information on working status
of the dam and to process and analyze the observed data timely so as to provide reliable data for
safe operation of dam. The system is planned synthetically and executed step by step in phases in
combination with the project construction requirement to make a full use of each single component
of the automatic system. The synthetic and permanent automatic system will be executed when the
condition is made available at the later stage of construction.
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Executive Summary

10 Permanent and temporary facilities


10.1 Construction design
(1) Main powerhouse and switchyard
The outdoor terrace elevation of main powerhouse is 51.2m. It is of bent structure with length of,
124.5m, width of 29.05m and height of 22.8m. The main erection bay is in the south of the
powerhouse and at the end of incoming road for transportation convenience. As a long-span
powerhouse, the main powerhouse adopts light roofing structure for the roof.
GIS switchyard is on the upstream side of the main powerhouse and is next to the main powerhouse.
There are three floors above the ground with frame structure. The dimension is 79.213.024.8m
(LWH, axis dimension) and construction area is 3600m2.
(2) Auxiliary powerhouse
The auxiliary powerhouse has 3 floors above the ground, the central control room and relay
protection room are located at the second floor; the construction area is 2730m2 and dimension is
51.421.013.1m (LWH). According to function demands, the first floor of auxiliary
powerhouse is provided with power distribution room, cable room and storage battery room, the
second floor are used for central control room, relay protection room, computer room, shift room,
secondary laboratory and secondary instrumentation room and the third floor are used for
communication room, duty room and meeting room.

10.2 Fire fighting design


The fire fighting design of this project includes the fire fighting designs of dam area and camp. The
ground elevation of the powerhouse is 51.2m and a ring fire fighting lane is provided inside which
is connected to the road outside the powerhouse. There are three buildings arranged inside the
powerhouse, i.e. main powerhouse (including switchyard), auxiliary powerhouse and guard room
and the spacing between each building is more than 10m; the dam area is about 600m from the
powerhouse and it is connected to the powerhouse with highway on the dam. The top of the dam is
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provided with crest access road and its ends are provided with turnaround of fire truck of 15x15m.
The dam area is provided with high and low-voltage power distribution rooms of 100m2, diesel
generator room of 80m2 and water treatment room of 200m2 . The dam crest is provided with hoist
room and oil pump room according to the needs.
The permanent camp is located about 5km from the downstream side of the axis of dam with an
area of 50000m2, field elevation of about 55m and total construction area of 5610m2; it is provided
with 9 units in total, including built-in office building, guard room, dinning hall, duty dormitories,
flood prevention warehouse, machine repair room and water treatment room. The camp is provided
with ring fire fighting lane that can lead to each unit, with width not less than 4m. The spacing
between each building shall not be less than 10m.
The water source for fire fighting is taken from the dam area. The raw water enters water treatment
equipment through the submersible pump and the effluent water enters the gravity and technology
common pool of 400m3 through the fire pump; the fire water supply system is mainly responsible
for the fire water supply of buildings like powerhouse and electromechanical equipment like
generator unit and it is set as permanent high-pressure fire water supply system.
In order to guarantee that the accident will not expand through the ventilation system when a fire
occurs to the powerhouse as well as to create a good working condition for fire fighting, different
fire fighting measures are taken to each ventilation system according to relevant specifications.

10.3 Permanent camp


This project is the permanent camp of Karama No.1 Hydropower project, according to construction
and operation conditions of the project and in consideration of principle of the combination of
permanence and temporality in design, the construction period is applied for the buildings of office,
dormitory and dinning hall of construction unit, site design representative and supervising engineer,
and the operation period is applied for the office room of management unit, duty dormitory, dinning
hall and other production auxiliary rooms etc.
The permanent camp is located at about 5km from the downstream of dam axis with an area of
50000m2, field elevation of about 55m and total construction area of 5610m2 and it is provided with
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built-in office building, guard room, dinning hall, duty dormitories, flood prevention warehouse,
machine repair room and water treatment room etc. The office building and duty dormitories adopt
3-floor frame structure and other monoblocks adopt single-floor frame structure.

11 Construction organization design


11.1Construction conditions
Karama No.1 Hydropower project is located on River Karama, West Sulawesi Province, Sulawesi
Island, Indonesia, where the highway transportation infrastructure is backward, and there is no
highway on both banks near the dam site, external traffic is inconvenient. General works can be
done by local workers, but technological workers are in shortage. Cement and steel reinforcement
can be purchased from China, and petroleum, diesel and explosive can be purchased locally. It is
required to provide house generator units for the construction power.

11.2 Natural construction materials


There is quarry area, gravel yard and borrow area near the dam site. The gravel yard is a little far
from the dam site and it is covered with thick soil layer, so generally it is exploited under water and
most part of the yard is planted with (chocolate) fruit trees and few with agriculture crops. No.Q2
artificial aggregate quarry area is located at the downstream of the left bank of dam site and is about
3km from the dam site; the cover layer of the quarry is relatively thin and is convenient for
exploiting and transportation. It is recommended to use No.Q2 artificial aggregate quarry area as the
untrimmed stone source of gravel processing plant in this design stage.

11.3 Construction diversion


The level of diversion structure is Level 4 and the flood standard adopts 10-year flood and the
corresponding peak discharge is 3825m3/s. Tunnel diversion is adopted water diversion of the
project. Two city gate-shaped diversion tunnels are arranged with the lined section size of 11
m12m. The water retaining structure is upstream and downstream earth-rock cofferdams.

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11.4 Main works construction


The main works mainly include concrete dam, water diversion system and powerhouse etc.
A 43m3 mixer plant is adopted for the blending and material supply for both conventional concrete
and roller compacted concrete. The roller compacted concrete is transported to the bunker with a
dumper, leveled with a bulldozer, compacted with a vibrating roller and cut in the joint with a joint
cutter. The conventional concrete is transported to the discharging platform with a dump truck and
dumped to a concrete tank of 3m3, and then it will be lifted to the bunker by a crane and vibrated by
a leveling vibrator. The rock tunnel excavation of the adit section of water diversion system is
conducted by a three-armed drill jumbo for smooth blasting and the inclined shaft adopts raising
climber for construction of pilot tunnel, artificial pneumatic drill for drilling and expanded
excavation and slide residues to lower adit. The rock excavation of powerhouse adopts the method
of stage excavation, and crawler drill is adopted for drilling and presplitting blasting. The concrete
is transported with dumper trucks and dumped to a concrete tank of 3m after arriving at the site and
then it will be lifted to the bunker by a tower crane and vibrated manually.
The main electromechanical equipment is installed with bridge crane and the main metal structures
are installed with gantry crane.

11.5 Construction traffic and general layout of construction


Karama River is located in the middle and north of Luwu & Tana Toraja, West Sulawesi Province
and is about 60km to the capital city Mamuju. Belang Belang International Port is located about
58km north of the provincial capital city Mamuju. The access route is from Belang Belang
International Port northward through the coastal provincial highway to Papalang Village and then
turns to Pokarawaan Village rightward and finally reaches the dam site. The highway is about 59km
in total length.
The construction arrangement is mainly divided into construction living area on the right bank,
construction production area on the left bank and disposal area on the left bank. The construction
living area is mainly arranged in the construction camp, the construction production area is arranged
2km at the left bank of downstream side of dam site along the river and the disposal area is arranged
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at the mouth of Salu Kamassi Trench at the left bank and Trench at the right bank, with weighted
average transportation distance of about 10km.

11.6 Overall construction schedule


The total construction period of this project is 54 months (January of the first year to June of the
fifth year), in which the construction preparation period is 20.5 months, main works construction
period is 28.5 months and project completion period is 5 months. The cut-off time is in the mid of
July of the second year and gate closing is arranged at the end of October of the fourth year; the
generation period of the first generator unit is 49 months (the end of January of the fifth year) and
that of the last generator unit is 51 months (the end of March of the fifth year).

12 Hydraulic machinery
Karama No. 1 Hydropower project is located at the downstream of Karama River, Sulawesi,
Indonesia. The normal pool water level of reservoir is 115m, the installed capacity is 450MW and
the number of units is 4.
According to the operating water head scope of the station, vertical shaft Francis turbine is used.
The turbine type is HL247-LJ-430 and the rated water head Hr is 71m. The generator Type is
SF112.5-40/990 and its rated capacity is 112.5MW.

13 Metal structures
The metal structures of Karama No. 1 Hydropower project are distributed at the flood-discharge
surface hole, entrance of power tunnel, powerhouse tail water and entrance of diversion tunnel.
There are 28 sluice gates and trashracks, 36 sets of embedded parts and 12 sets of hoists (including
trashrake). Quantities of metal structures are about 4,577t.

14 Electric equipment
Karama No. 1 Hydropower project will connected to Mamuju substation to supply power for four
provinces grid via two circuits of 275kV overhead line. In the Karama power station, Combination
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mode of one generator-one transformer is adopted; 275kV voltage grade is adopted at the step-up
side, and four-circuit main transformer incoming line, two-circuit overhead outgoing line and
double-bus connection wiring are adopted.
The power station will use the full computer monitoring mode, no conventional monitoring is set,
and is designed according to the on-duty way with few people. The concentrated control and
monitoring of main electromechanical equipments in the whole station can be realized through host
machine and operator workstation in the central control room. The system uses the remote control
way to dispatch the power station. Meanwhile, it can make use of the interface supplied by
computer monitoring system to carry out the dispatching. The relay protection uses the
microcomputer type relay protection device. The excitation system of generator uses automatic
shunt excitation and static silicon-controlled excitation way. The excitation regulator uses the
microcomputer type.
According to the status of hydropower station and requirements of incoming system, as for the
dispatching management mode and detailed conditions of hydropower station such as installed
capacity, project arrangement and construction organization after the completion of works,
determining the general communication scheme includes construction communication and
permanent communication. The permanent communication includes the system communication,
in-plant voice communication, external communication and comprehensive communication
network, etc.

15 Transmission Line
According to the local power grid data we collected, analysis of connection to the grid for the
Karama No. 1 Hydropower project was proceded; after calculation of load forecasting, load flow
and short circuit.etc, the energy of the new power station will be transmitted to Mamuju substation
to provide power for four provinces grid. Two circuits of 275kV overhead line will be constructed,
and the Mamuju substation will be updated to ensure the connection.

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16 Environmental impact assessment


16.1 Environmental conditions of project area
(1) Water quality environment
According to the site survey, the river basin is located in river valley and there is no big industrial
pollution source and domestic pollution source at the upper reaches. The river where the project
locates has plenty of water and water quality is good. The river segment under assessment for
hydropower station is not polluted yet.
(2) Air and acoustic environment
Based on site survey, there are many trees in the project area and vegetation condition is good. The
residential area of villager is mainly on both sides of the river-way and there is no industrial
pollution source around. The quality of ambient air and acoustic environment is good.
(3) Quality of ecological environment
According to the site survey of power house plants, water quality of the river where the project
locates is good and the ecological system is not polluted by human yet. There is no aquatic
dominant species with large number and the ecological system is in positive cycle and healthy state.
According to the information provided by West Sulawesi forestry department, Karama River forest
natural reserves is built up with the approval of national forestry department of Indonesia in 1999.
The submerged reservoir area of this project revolves partial area of forest natural reserves.

16.2 Environmental impact forecasting and evaluation


16.2.1 Water environment impact forecasting
(1) Impact on the water quality and temperature
The reservoir area of Karama No. 1 Hydropower project has dense vegetation. After impounding of
the reservoir, the leaves and branches will decay in the water easily, thus leading to the increase in
organic pollutants. The nitrogen and phosphorus in the soil of reservoir inundation zone will enter
into water body, both of which may cause the increase in nutrition level of reservoir. In addition,
because the soluble pollutants on the original river bed within the water storage scope may enter
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into the water body, it is also capable to cause worse water quality at the initial stage of water
storage upon completion of reservoir.
Since the area of the project location is tropical area at the equator, with an average air temperature
for years of 27.6 and a minimum air temperature over the years of 18.2, the temperatures all
the year round do not change much and the reservoir will build up stable temperature stratification,
without inter-annual change impact. The reservoir will discharge through surface hole after normal
operation, thus the water temperature stratification of the reservoir will not cause obviously adverse
impacts to downstream aquatic organism and fish.
(2) Impact on the hydrologic situation of downstream
The reservoir construction will not cause greater impact on the change in water level at the
downstream of dam site. The discharge of tail water in the reservoir will lead to the increase in
downstream flow within a smaller scope. The fluctuation of hydrologic situation is not obvious on
the whole.
16.2.2 Impact of engineering inundation land occupancy
(1) Impact of engineering excavation and land occupancy on integrity of regional ecosystem and
measures
The construction works will cause the disturbance and damage to the ground surface during
construction. However, except for the permanent land occupancy of works, the construction
production, living area and construction road and so on are just occupied temporarily and the impact
scope is less. In addition, there are no ecological sensitive points near the project. The impact on the
natural ecosystem will be controlled within certain scope by implementing the environmental
protection and water protection measures.
(2) Impact of reservoir inundation
The reservoir construction will inundate all the area within the reservoir range below El 115m.
According to the initial investigation, the biological resources in the inundated area are very
abundant and may involve the endangered animal and plant types. It is necessary to carry out the
investigation and research of special topic in the next stage. Most of land types which are directly
inundated are cultivated land and forest land. The complete change in the way to use the land will
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bring about certain loss in local agricultural production.


According to the initial investigation achievements, the directly inundated scope of the reservoir
area involves 12 administrative districts and 59 neighboring areas of two counties. A number of
migrants will cause certain impact on the progress of construction. Because the reservoir
construction causes the road to be cut off or form an isolated island and the production and life of
residents will be affected, it is required to consider appropriate compensation, relocation and
protection measures.
16.2.3 Ecological environment impact
(1) Impact on the aquatic ecosystem
Upon completion of the hydropower station, the water level, flow rate and so on in the reservoir
area will be changed, which will also change the living environment of fishes in the original river
course. The aquatic ecosystem changes accodingly. The change of composition of fish fauna mainly
includes the corresponding decrease of rushing fish in the reservoir area and local immigrations to
the reservoir tail. The fish which adapts to the slow flow environment will be increased
correspondingly.
At present, it still lacks the investigation materials about other aquatic organism. However, it can be
seen from the on-site investigation of the project that the water quality in Karama river is good and
its ecosystem is not polluted artificially. If there are no advantaged types of aquatic organism with
huge quantity, the ecosystem is in the virtuous circle and healthy states.
(2) Impact on the terrestrial ecosystem
The water storage of reservoir changes the land use pattern in the inundated area and biomass. The
use of the occupied land which is inundated by water storage of reservoir will be a permanent
change. The plants grew in its scope will also disappear permanently and its impact is a long-term
one.
Because the construction of the project will cause the land occupation and the waste stacking, etc
during the construction process, the hydropower station works will disturb, damage and submerge
the original landform and vegetation, and reduce or lose the original function of water and soil
conservation in different degrees. The construction of the project will make the structure and pattern
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of land use within the occupied land range. The land within the scope of permanent occupation will
change the original nature and the new performance will maintain unchanged for a long time; the
land within the scope of temporary occupation will restore its original function or be developed
reasonably according to actual conditions upon completion of the project.
16.2.4 Adverse impact during construction period
(1) Impact of sewage during construction period
The sewage generated by construction is composed of production sewage and domestic sewage. If
the sewage generated by construction is discharged at will, it will cause adverse impact on the
environment of surrounding surface water and it is required to take the sewage treatment measures.
(2) Impact on the air environment quality
The air pollution during construction period is mainly the harmful gas generated by burning diesel
oil by construction machinery and transport vehicle and living fuel of construction personnel and
the dust generated by rock excavation, blasting and mechanical pulverization. The above air
pollution will lead to adverse impact on the on-site construction personnel and ambient
environment.
(3) Impact on the sound environment
The noise source in the construction area is mainly from the noise generated by automatic concrete
mixing system, large excavator, bulldozer, dumper, motor vehicle and blasting. It will affect the
daily life of residential areas which are closer to the construction area and harm the health of
construction personnel and it is required to take the labor protection.
(4) Impact of solid waste
The spoil and abandoned dreg are the main source of water loss and soil erosion and mainly include
the abandoned dreg, building garbage and domestic garbage generated during construction. There
are 3,500 personnel during construction peak period, each person generates almost 1.0kg of
domestic garbage each day and the construction period is 4.5 years, so the garbage will almost
increase by 5,700 tons. If the garbage that is generated during construction is not managed and
treated reasonably, it will cause stink, pollute the water body and harm the population health.
Dumping the solid waste at random will damage the original landform and surface vegetation
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within the land occupied by construction to different degrees. In order to protect the water and soil
resources, it is required to pay attention to the concentrated stacking of spoil and abandoned dreg
during construction and take engineering and plant measures to carry out the protection. It is also
required to carry out the ecological restoration in the construction area where the original landform
is damaged and lessen the impact on the regional ecology due to construction activities as far as
possible.
(5) Impact on the population health
There are a number of outside personnel to station on the site during construction peak time. During
construction, due to incomplete living conditions and worse sanitary conditions, the incidence rate
of pandemic diseases such as dysentery and pneumonia may increase. Due to crowded population
and high construction strength, it may cause the decrease in the disease resistance of construction
personnel and it is easy for them to catch a disease. In addition, if because the accident causes that
the personnel are injured accidentally during construction, they shall go to see a doctor in time in
order to avoid the infection.
16.2.5 Impact on the social economy
The construction of Karama No. 1 Hydropower project of Indonesia does not only improve local
transportation conditions but also creates favorable conditions to promote the development of local
economy along with a plenty of capital investment; at the same time, as for the demand of human
resource, the engineering construction also provides a number of employment opportunities for
local people; the stationing of engineering construction team and demand of daily necessities also
will promote the development of local service industry; it also plays an important role in promoting
the economical development by enhancing the external communication, expanding the information
amount and changing the ideas, etc.
After the reservoirs are built, it is favorable to for a microclimate in the reservoir area, increase the
air humidity and decrease the temperature and it is fit for travel as summer resort. Both the
development of tourism in the reservoir area and perfection of power and water supply facilities in
the towns will have positive impact on the local development.
There are abundant natural resources and better ecological environment in the area at which the
power plant is located. The ethnic customs and beautiful natural landscape make this region have
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great tourism development potential. Along with the development, construction and perfection of
transportation and communication conditions plus rich human environment of this region, it will
certainly substantially promote the tourism development of this region.
Electricity instead of firewood is used for the development and construction of hydropower station,
so less forest trees will be cut and effects of protecting the forest and preserving soil and water will
be achieved, which have active function for keeping ecological balance of regions.
16.2.6 Discharge amount of sewage and domestic garbage during operating period
During operating period of power plant, there will be 150 personnel in the management department
and almost 14.4m3/d domestic sewage each day. The domestic sewage includes the sewage in the
kitchen and that for washing, etc. The main pollutants are organic pollutant, ammonia nitrogen and
fecal coliform, etc. If the production garbage during operating period is calculated by 1kg of
average generated amount per person per day, there will be 150kg of domestic garbage every day. It
is necessary to take measures to treat the domestic sewage and garbage in the engineering
management area during operating period.

16.3 Countermeasures and measures for environmental protection


16.3.1 Environmental protection measures during construction
(1) Water pollution prevention measures
According to the construction layout, the sewage pollutant generated by stone quarry is mainly
composed of the flying dust and suspended matter, so it only needs to carry out the desilting and
spraying treatment, then it is able to recycle the sewage pollutant. In order to save investment, the
sewage treatment system can be jointly designed with production and water supply system in order
to recycle the water to supplement the production water.
Due to less domestic sewage amount in the sporadic construction area with very few construction
personnel, it is able to carry out the simple soil burial treatment.
In the relatively concentrated living areas of all the construction sections, such as dam construction
site, it is more mature to use a complete set of technology and the domestic sewage treatment
equipment which is easy to install, operate, maintain and manage, specially dealing with the
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domestic sewage in the living area and discharge or recycling it to the required standard. In addition,
it is required to build temporary dry closet and mobile toilet in the construction area and to clean
them regularly.
(2) Air pollution prevention measures
In the process of loading and unloading the cement, it is necessary to keep excellent sealing state;
the side slope angle to stack the aggregate shall not be too big and it is required to appropriately add
the humidity in order to avoid the fine aggregate from being blew away by wind; add the water
firstly and then add the materials in order to avoid the cement from running away when mixing the
concreter; it is required to water frequently in the process of soil excavation; when loading the dusty
materials, it is necessary to cover the materials with canvas or properly add their humidity and often
clean the transport vehicle; regularly maintain the mechanical equipment.
(3) Noise pollution prevention measures
Adopt the production equipment with lower noise and advanced protection technology as far as
possible; enhance the maintenance of equipment; the on-site construction personnel wear the
individual noise-proof tool to prevent the noise.
(4) Treatment of domestic garbage during the construction
Set up 1 garbage can every 50 persons in the living area, so as to centrally collect garbage, and
arrange 1~2 sanitation worker(s) to collect, clear and dispose garbage. Garbage that can not be
recycled shall be transported to nearby slag yard to carry out sanitary landfill.
(5) Population health prevention measures in the construction area
Build the construction health center, provide necessary medical instruments and prevention and
treatment medicines of various infectious diseases, perfect the disinfection measures and avoid the
propagation of epidemic disease source in the engineering construction area; when the engineering
personnel enter the construction area, it is required to carry out the physical examination for them
and enhance the individual health protection; centralized water supplying shall be used in the
construction area to ensure safe drinking water.
16.3.2 Water and soil conservation measures
Green and beauty measures are taken in the project management area; provisional earth drainage
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ditch is built on both sides of construction road and in the construction camps. The design section is
trapezoid with a bottom width of 0.4m, a height of 0.4m and a slope ratio of 1:1.
The dreg yard of the project is coated by galvanized cage stone with a thickness of 0.5m and
masonry wall is designed at the bottom of the dreg yard. Provisional earth water retaining banks are
set all around at the top, so as to prevent loss of dregs during the stacking of abandoned dreg and
after the stacking.
Topsoil stripping and grass planting measures are used for stock yard.
16.3.3 Ecological conservation measures
As for the disturbance and damage to ecological environment which may occur during construction
period, it is required to take corresponding environmental protection and water and soil
conservation measures to recover the original ecosystem. Take following main measures:
(1) Strengthen the environmental management and monitoring and restrain the behavior to damage
wild animal and forest and grass;
(2) Strictly control the scope of temporarily occupied land by construction and selection of
temporarily occupied land of area beyond the inundated area of reservoir. It is required to
reasonably arrange the temporary building construction and decrease the damage to tropical
vegetation as far as possible;
(3) Enhance the water and soil conservation construction of works, decrease the water loss and soil
erosion caused by abandoning the dreg and borrowing earth, reduce the disturbance to
protogenic surface as far as possible and complete the landscape recovery;
(4) It is strictly prohibited to expand the scope of construction impact at will. The construction
personnel are restrained and not allowed to enter the forest beyond the affected area and it is
prohibited to damage the environment of area beyond the affected area. It is required to
strengthen the propaganda of ecological environment protection and prohibit felling trees
illegally.
(5) Strengthen the investigation and research on local aboriginal fish species. It is recommended to
consider the whole aboriginal fish area as protected object and set up the fish resource
monitoring station.
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16.4 Environment management and monitoring


The Construction Management Department of Project shall assign full-time persons to take charge
of the environment management, and the professional construction unit participated in the project
construction shall be equipped with professional environmental workers (or part-time) to take
charge of the environmental protection of the construction unit during the construction process.
The monitoring task shall be entrusted to and undertaken by a qualified monitoring unit of
department in relevant industry, and be arranged and implemented by the project environment
management organization.

16.5 Environmental protection investment estimate


The preliminary estimate of the environmental protection investment of this project is
USD13,884.30 million.

16.6 Environmental assessment conclusion


Development of electric energy at KARAMA river basin and construction of Karama No.1
Hydropower project should be implemented as early as possible, which is very important to solve
the crucial problems of insufficient installed capacity in the power grid and lack of electric power in
four provinces of Sulawesi Island so as to promote economic development in these four provinces
in Indonesia. The Karama No.1 Hydropower project will produce clean energy.

Adverse effect to

be caused to environment can be mitigated by taking adequate ecological protection and soil and
water conservation measures. Based on the analysis on environment, we preliminarily hold that
there is no severe environmental restraint for construction of this project and the project plan is
basically feasible.

17 Reservoir Inundation and permanently Land Requisition


CGGC engineers and technicians carried out field survey for material index of reservoir inundation
from March 2011 to April, and submitted the preliminary investigation results to the planning
department of Sulawesi Barat Government on 10th April. Afterwards, CGGC appointed some
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technicians to go to the site and carried out additional investigation and data collection from 11th to
29th June.
According to relevant specifications, the design flood standard for inundation treatment is as below:
(1) 5-year flood for cultivated land and garden landP=20%;
(2) 20-year flood for rural residential areaP=5%;
(3) Normal pool level for forest land and meadow;
(4) Flood standard for industrial and mining enterprise and special facility is the same as that of
residential area.
Investigation and treatment zone of reservoir inundation of Kalama No.1 Hydropower project is
primarily determined by taking the influence of reservoir flood backwater, freeboard and sloughing
bank, landslide and submersion of the reservoir into consideration.
According to investigation, in lower dam site scheme, the places below 110m backwater water level
of reservoir involve 48 natural villages of 10 administrative villages in two County Benehua and
Kalumpang. In upper dam site scheme, the places below 120m backwater water level of reservoir
involve 59 natural villages of 12 administrative villages in two counties, County Benehua and
Kalumpang.
In reservoir area of lower dam site scheme, the submerged places below 110m backwater water
level and affected places above backwater water level have totally 7479 people from 1701 families;
and 174092m2 of 2406 blocks of houses; total land area about 8093hm2, including paddy field about
621hm2, dry farmland about 327hm2, garden land about 4444hm2, forest land about 1617hm2, land
requisition of village about 289hm2, land requisition of road about 19hm2, water surface of river
about 776hm2.
In reservoir area of upper dam site scheme, the submerged places below 120m backwater water
level and affected places above backwater water level have totally 9752 people from 2187 families;
and 213958m2 of 2976 blocks of houses; total land area about 9925hm2, including paddy field about
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2

1033hm , dry farmland about 485hm , garden land about 5776hm2, forest land about 1527hm2, land
requisition of village about 356hm2, land requisition of road about 19hm2, water surface of river
about 729hm2.
Furthermore, it will submerge and affect 47km class four roads, 10 bridges, 18km 10kV power line,
one abandoned solar power station, three small hydropower stations and eight industrial enterprises.
Reservoir inundation area and junction construction area need to move some local inhabitants,
expropriate cultivated land and garden land, and need to make resettlement planning. Resettlement
planning and moving planning shall be uniformly arranged and solved by Sulawesi Barat Province
government where Karama No.1 hydropower project is located.
Residents can be resettled on the right bank of Bonehau River according to the understanding of
material index of inundation investigation carried out by CGGC engineers and technicians and the
road construction of traffic restoration around the reservoir of this project. There are three places
with good topographic conditions with the total area about 2800 hm2 on the right bank of Bonehau
River for resettlement according to preliminary site survey.
The minerals within the boundaries of Bonehua county and Kalumpang county mainly include gold,
coal, manganese, iron and limestone, etc. There are 8 minerals below 120m elevation along the
banks of Bonehua River and Karama River, including one iron mine, one manganese mine and six
coal mines. Early-stage exploitation has been made to the manganese minerals. In the next phase,
minerals in reservoir area shall be investigated and reasonably determine compensation investment
on mineral resources.
According to investigation, the project involves special facilities within the scope of 120m elevation
along banks of river of the two counties, they are mainly traffic facilities, electric power facilities,
and water conservancy facilities; there is no other special facilities, such as radio and television,
communications and telecommunications, etc.
Because Saltiwo solar power station and Kalumpang small hydropower station have been
abandoned now, and Hinua small hydropower station hasn't finished construction, therefore, no
reconstruction is needed.
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The installed capacity of Mappu hydropower station is only 0.7MW, the scope of power supply is
two villages: Mapppu and Lumika. The power station is in service. Its reconstruction should be
taken into comprehensive consideration with the resettlement.
The special facilities that need to be explicitly reconstructed in reservoir area mainly are road from
Mamuju to Kalumpang along the Bonehua river. It plans that this road shall span Bonehua River on
the upper reaches of Pelosian; it shall be built to the lower reaches of Bonehua River along the
river's right bank above the river line; the end of the road will be near Village Mappu. A wharf shall
be constructed to settle travel problems of residents on upper reaches of Kalumpang of the Karama
River.
According to relevant regulations and field investigation data calculation, direct investment on
reservoir inundation of 115m in upper dam site scheme is $ 117247000, total static investment is
$ 128970769.

18 Investment estimate
The total cost of the Project is estimated to be 1,335.516 million USD, The cost of transmission line
is estimated to be 63.412 million USD.

19 Economic and financial evaluations


Karama No.1 Hydropower Station has an installed capacity of 150MW and it is installed with four
hydroelectric generating sets with a single-machine capacity of 112.5MW. Its average generated
energy is 2412GWh for many years.
According to the construction schedule, the construction period for Karama No.1 Hydropower
Station is 54 months.
The interconnected energy of the Project is metered at the switchyard. The interconnected energy is
calculated as the design power production of the Project minus waste water energy loss in flood
season, and minus plant service power and transformer power loss. It is taken as 95% of the design
power production of the Project. According to the construction schedule and the power grid capacity,
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the benefit will reaches 37.2% and 100% of the design value in the 5th, and 6th years respectively
after project commencement.

19.1 Financing scheme


The total investment in Karama No.1 Hydropower Station consists of construction investment,
interests in construction period and financing costs. The total investment reaches US$1.34 billion,
including the construction investment of US$1.084 billion, the interests in construction period of
US$150.255 million, the financing costs in construction period of US$101.678 million. Total
transmission cost is estimated to be US$ 51.475 million.
The potential funding structure comprises four sources of funds, namely Stated-Owned Financiers
("SOF"), International Commercial Loan, shareholder loan and common equity. Project Karama is
expected to have a debt gearing of 75.0% comprising a SOF Loan (37.5%) and a International
Commercial Loan (37.5%). Equity would constitute 25.0% of the total project cost; a portion of
which would be in the form of shareholder loan.

19.2 Calculation conditions


(1) The project construction period is 54 months, the operation period is 30.5 years and thus the 35
years of a period is calculated.
(2) The income tax takes 25%, The water use payment is Rp 5 /kWh, the water surface tax takes
10% of the water use charge, the VAT on Material and Maintenance costs takes 10%, dividend and
shareholder interest withholding tax takes 15%.
(3) Loan repayment period: 15 years is taken. The annual interest rate is 6.35%.
(4) Measure and calculate the grid electricity price when the equity IRR(pre-15% WHT) is 11%.

19.3 Calculation results


Based on the above conditions, according to the calculation, when the equity IRR(pre-15% WHT) is
11%,the grid electricity price is 8.450 Usc/kWh. Including transmission cost, the grid electricity
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price is 8.841 Usc/kWh..

19.4 Economic evaluation


According to the calculation, the economic internal rate of return is 13.74%, Including transmission
cost, the economic internal rate of return is 13.29%, which is larger than the social discount rate of
10%. Therefore the Project is more economical then natural gas power plant.

20 Legal Environment Analysis and Evaluation


20.1 Legal Environment
The following law and regulations related PPP/IPP legal structure are reviewed

Presidential Regulation No. 67/2005

Presidential Regulation No. 13/2006

Presidential Regulation No. 56/2011;

Regulation of Ministry of Finance No. 38/2006 concerning the guide on risk control and
management of infrastructure project construction;

Regulation of CMEA No. 4 /2006 concerning the evaluation of the infrastructure PPP projects
required Government Support;

Governmental Regulation No. 35/2009 concerning governments involvement on establishment


of limited company (PT) on infrastructure guarantee;

Law No. 30/2009 concerning electricity;

MEMR Regulation No.5/2009 and No. 31 concerning Guidelines for electricity purchasing
price by PLN from cooperation and other business entities;

Minister of Industry Regulation No. 48/M-IND/PER/4/2010 concerning the utilization of local


products for development of electricity infrastructure;

2007 Investment Law;

Law No.40/2007 concerning on liability company (PT);

2010 Investment Industries Policy;


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Governmental Regulation No. 6 /2009 concerning management on governmental assets;

Governmental Regulation No. 50/2007 concerning the procedures of regional cooperation;

Presidential Regulation No. 9/2009 concerning the financing agencies;

Law No. 5 /1960 concerning basic agrarian affairs;

Law No. 20 /1961 concerning land acquisition;

Law No.18/1999 concerning construction service;

Law No. 32 /2004 concerning regional administration;

Presidential Regulation No. 36/2005 concerning procurement of land for development of the
public interest;

Presidential Regulation No. 25/2006 concerning the provisions of Presidential Regulation No.
36/2005 regarding the procurement of land for the implementation of development for the
public interest;

Regulation of the Head of the National Land Agency No. 3/2007 concerning the provisions of
Presidential Regulation No. 36/2005 regarding the procurement of land for the implementation
of development for the public interest;

Decree of Head of Environment Impact Management Agency No.56/1994 concerning guideline


for significant impacts criteria;

Decree of Agreement of Mining and Energy No. 1899.K/MPE/1994 a. concerning Supervision


on Implementation of Environmental Management and Monitoring Plans for Mine and Energy
Sector;

Decree of the Environment Minister No.KEP-299/MENLH/11 /1996 concerning technical


guidelines study of social aspects in preparation of EIA;

Decree of Head of Environment Impact Management Agency No. 124/1997 concerning


guideline study of public health aspect in preparation of EIA;

Governmental Regulation No. 27/1999 concerning the environment impact analysis;

Decree of Head of Environment Impact Management Agency No.8/2000 concerning


community involvement and information disclosure environmental impact analysis process;

Decree of Agreement of Mining and Energy no.1457K_28_mem_ 2000 concerning Technical


Guidelines for Environmental Management in Mining and Energy;
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Law No. 32 /2009 concerning environment conservation and management;


Law No. 41/1999 concerning Forest;

Regulation of Forestry Ministry No.43/2008 concerning guidelines for forest utilization;

Government Regulation No. 10/2010 concerning guidelines for the division and function
change of forestry land;

Government Regulation No. 24 /2010 concerning forest utilization;

Government Regulation No. 35 /1991 concerning river;

Law No. 7 /2004 concerning water resources;

Government Regulation No. 42 /2008 concerning Water Resources Management;

Government Regulation No. 37/2010 concerning dam;

Act No.24 /1992 concerning spatial plan;

Law No. 26/2007 concerning spatial arrangement;

Governmental Regulation No. 26/2008 concerning national spatial arrangement;

Company Law, labor Law, tax law, anti corruption law, bilateral/multilateral investment
agreement, and dispute resolution.

20.1.1 Current Situation of PPP/IPP Development in Indonesia


The development of PPP/IPP in Indonesia has mainly gone through three generations, namely first
generation (1992 until the Asian Financial Crisis), second generation (post Asian Financial Crisis to
2008) and third generation (2010 onwards).
In the first generation from 1992 until the Asian Financial Crisis, State-owned Electricity Company
(PLN) has signed 27 IPP projects. However, when the Asian financial crisis struck in 1997,
ultimately six projects were terminated, six were acquired by the government, one project ended up
in a protected legal dispute, and fourteen projects continued under renegotiated terms. When
renegotiations were completed in 2003 most continuing IPP investors agreed to new PPAs which
generally included lower tariffs than were initially contemplated (generally from the original price
of US7 cents per KWh to less than UScents per KWh).

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In the second generation since post Asian Financial Crisis to 2008, only 18 PPP/IPP projects were
awarded. These projects mostly operated under Build-Own-Operate (BOO) scheme and IPP
appointments were granted from competitive tendering. In this generation, Indonesian government
has done a series of meaningful work to promote the development of PPP, including inter alia, PPP
legal framework was established through Presidential Regulation NO. 67/2005; new legislation
suitable for PPP scheme was enacted in various fields of railways, ports, airports, ground
transportation, electricity, sewage management and power; establishment of professional
institutions including the Committee for the Acceleration Program (KKPPI), the PPP Central Unit
(P3CU) and Risk Management Unit (RMU) etc.
In the third generation from 2010 onwards, in line with Presidential Regulation No.13/2010, the
Indonesian government has provided PPP projects with more governmental support and guarantees
such as in relation to land acquisition. In this period, the most outstanding project is the 21000MW
coal-fired power station in Center Java. The Project has stood to provide practical guidance to other
PPP/IPP projects operated according to Presidential Regulation No.67/2005, Presidential Regulation
No.13/2010 and Presidential Regulation No.56/2011. These are the basic regulations on
infrastructure PPP projects which include airports, port, railway, highroads, raw water supplement,
irrigation system, drinking water, wastewater treatment, solid waste treatment, information
communication technology, electricity and oil and gas.
20.1.2 Current Situation of the Development of Indonesian Electricity Legislation
The legislation for the electricity sector in Indonesia has gone through three phases namely the 1985
Electricity Law, the 2002 Electricity Law, and the 2009 Electricity Law. And it is the 2009
Electricity Law that is in force at present. According to 2009 Electricity Law, PLN is not monopoly
in electricity infrastructure whereas it is still the offtaker of power plants.
In the fields of PPP, fundamental laws for PPP projects in infrastructure projects are Presidential
Regulation No.67/2005, Presidential Regulation No.13/2010 and Presidential Regulation
No.56/2011. According to these regulations, business entities participate in electricity infrastructure
(including generating, transmitting and distributing electricity) through the public tender.

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Other laws related to the Project include without limitation laws concerning foreign investment,
government guarantees, environmental conservation, space utilization, water resources, labor,
company, tax matters and dispute settlement etc.
20.1.3 Stakeholders in PPP/IPP in Indonesia
Various governmental offices and institutions are involved in Indonesian PPP/IPPs. And key
stakeholders and their relations are shown in the chart below:

20.2 The Basic Legal Issues of the Project


20.2.1 Business Architecture
The business architecture is shown as follows:

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Executive Summary

China Gezhouba Group Company Limited International (the Company) is responsible for invest and
develop Indonesian KARAMA No.1 HEPP of West Sulawesi Province (the Project). After the
accomplishment of the hydropower plant, the Company should operate and maintain the
hydropower plant and sell the generated electricity to PLN. Then, PLN sells the electricity to
ultimate consumers by its own electricity transmission and distribution network. The Company acts
as IPP.
20.2.2 Developing Process
The developing process of PPP projects in Indonesian electricity industry is composed of 7 stages
which are identification and priority, feasibility study, evaluation and approval, public tender,
financing, building, operation and maintenance. These are regulated in Presidential Regulation No.
56(2011).

In the stages of identification and priority, feasibility study, the tasks in these two stages should be
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accomplished by the initiator (either the government or the business entity).


The flow chart of the first three stages which are identificating, prioritizing and listing in the
Infrastructure Projects Plan, feasibility study, evaluation and approval is described as follows:

1) Projects Identification and Priority


In this stage, the business entity should give the initiative of the project to the government. The
Government Contracting Agency (GCA is PLN for this project) should determine the priority of the
project. If the project requires government support, P3CU should list it into the Yellow book
published every year.
2) Feasibility Study
The second stage is feasibility study, which should be done by the project initiator and submitted to
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GCA for evaluation.


The feasibility study contains the basic analysis of scheme and accounting, risk analysis, proposed
cooperative form, degree and nature of government support, performance plan and the result of
public consultation.
The Company is in the stage of feasibility study, and should finish the feasibility study as required
which should be sent to PLN for evaluation and approval.
3) Evaluation and Approval
PLN is responsible for the evaluation of the feasibility study report.
The Project should go into the public tender directly in the condition that the project is approved by
PLN and does not require the Indonesian government guarantee. In case the project requires the
government guarantee, it could be obtained by PLN applying to Ministry of Finance (MoF) through
KKPPI. The project goes into the public tender after the approval of MoF on the government
guarantee. The project will be turned back to the stage of feasibility study once the application is
not approved by MoF. If the feasibility study report is negated by PLN, the Company could
terminate the project or update the feasibility study report to submit to PLN for approval again.
4) Public Tender
Pursuant to Presidential Regulation No.56(2011), the Projects based on the initiatives of the
government and the business entity should be given to the business entities by public tender unless
it is in the condition of special dilatation and crisis or the projects are related to pithead and
renewable energy. It should be noticed that the tender continues even if only one eligible tender
participant. The Procurement Committee shall submit the report on the prospective single tender
participant to GCA who decides the continuation of the negotiation with single tender participant.
Once GCA agrees the negotiation, the Procurement Committee is responsible for negotiation and
submits the result and other supportive information to GCA to decide the final tender winner.
The project initiated by the business entity could be given the added value on the expenses of
initiation. The added value includes a no more than 10% of the tender value of the initiator or
submitting right to conduct a change in offer with a period of thirty days effective from the
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determination date of the best offer from the Cooperation Project public tender. The added value
could be given to the initiator in the terms of participating in the public tender. The feasibility study
report and other supportive documents are transferred to GCA without any payment or
compensation. If the initiator rejects to participate in the public tender, the initiator could get
compensation on the expense of initiation (including intellectual property) from GCA or tender
winner. The standard of compensation is determined by GCA based on the evaluation of chosen
independent auditor. The compensation covers the expenses of feasibility study preparation and
Cooperation Project transaction until Financial Closing. The compensation in any form should be
approved by GCA.
The process of public tender could be shown as follows:

5) Financing
Financing Closing should be obtained in 12 months after the signature of PPA by Project Company
and GCA. Financing Closing is accomplished after the signature of loan agreement and payment of
partial loan for the construction of the Project. If the financing failure does not result from the
negligence of Project Company, GCA may extend another 12 months for financing. The Financing
Closing does not accomplished in the first 12 months or in the extension months, the PPA should be
terminated and GCA has the right to confiscate the performance guarantee.
After the Financing Close, Project Company should finish the construction based on the
Cooperative Agreement as well as operate and maintain the project in the business operation period.

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20.2.3 Risk Evaluation


P3CU assists GCA on the identification of risks and proper allocation of the identified risks among
parties regarding the infrastructure PPP projects.
Risk Evaluation is generally finished in the feasibility study and the allocation of identified risks is
ruled in the Cooperation Agreement (CA). The risks of the Project are composed of political risks,
legal risks, marketing risks and technological risks etc.
According to Regulation of Ministry of Finance No. 38/2006, the government could provide
government guarantees on political risks, project implementation risks and project demand risks.
20.2.4 Cooperation Mode
The cooperation mode of the Project should integrate Building, Operation, Maintenance,
Transferring, Owned, and Lease. In Indonesian electricity industry, the customary modes are BOT
(Build- Operate- Transfer) and BOO. Pursuant to Governmental Regulation No. 6 /2009 concerning
management on governmental assets, Business entity could utilize governmental assets to conduct
infrastructure projects. The practice includes managing governmental assets with franchising right,
operating the government assets after construction such as BOT. It should be noticed that the
Yellow Book published in 2011 by P3CU sets the mode of the Project as BOT.
20.2.5 Government Support
Pursuant to Presidential Regulation No. 56/2011, Government Support provides by Indonesian
government for infrastructure PPP projects include direct fiscal contribution, land acquisition,
government guarantee, tax incentives, Special Economic Zone incentives, provision of material
objects assets and government approval.
Pursuant to Presidential Regulation No. 56/2011, land acquisition should be conducted by GCA or
the business entity before the submission of public tender documents. If financing feasibly, the
tender winner could compensate all or partial expenses on land acquisition conducted by GCA. On
the contrary, the compensation on the expenses of land acquisition conducted by the project initiator
who does not participate in the tender. Therefore, it is suggested to confirm the compensation on the
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Executive Summary

hereinbefore issue.
Presidential Regulation No. 36/2005 and Presidential Regulation No. 25/2006 regulate the process
of land acquisition conducted by the government. The government should establish land acquisition
committee responsible land acquisition. Land acquisition committee should delegate independent
land evaluation agency to fix the land price. In the condition that land acquisition committee could
not make an agreement on land compensation with the land owner, its land acquisition committees
right to fix the compensation standard and require related agencies to draw the compensation in
regional courts in order to expropriate the land. Additionally, once the government fixes certain land
for infrastructure project, anyone should get a primary governmental approval for purchasing the
land.
Tax incentives are decided by MoF.
Regulation of Ministry of Finance No. 38/2006 concerning the guide on risk control and
management of infrastructure project construction rules the conditions and procedures of providing
government guarantees. Government guarantee should be applied by GCA followed by evaluation
of P3CU and acceptance of KKPPI. Then the application of government guarantee is submitted to
RMU under MoF for evaluation which should be submitted to MoF who has the final power to
approve the government guarantee. Once MoF approves, the government guarantee should be
executed by Indonesian Infrastructure Guarantee Fund (PT PII, IIGF). Pursuant to Governmental
Regulation No. 35/2009 concerning governments involvement on establishment of limited
company (PT) on infrastructure guarantee, Indonesian government establishes PT PII to manage the
government guarantee in order to decrease the financing expense of infrastructure PPP projects,
improve the quality and credibility of the project, as well as assist the government for better risk
management.
In addition, the Company signed a meeting memorandum with the government of West Sulawesi
Province on June 23, 2011. In the meeting memorandum, it is clear that government of West
Sulawesi Province should provide Government support in land acquisition, resettlement,
environment effect evaluation, tax incentives and government approvals.

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20.2.6 Contract Structure


The contract structure of Indonesian infrastructure PPP projects is shown as follows:
Financing
Guarantee
Agreement

Indonesia
Infrastructure
Guarantee Fund
PT PII

Multilateral Development
Bank

Partial Risk GuaranteePRG

Corporation Financing or Guarantee

Inbound and Outbound


Commercial Banks

Debt Financing

Project Initiator

Debt Financing
Debt Financing
Operation and
Maintenance
General Contracts

O&M Contract
Shareholders Agreement

Capital Stock
Project Company

Other
Shareholders

Indonesia
Infrastructure
Financing Fund
(PT IIF)

EPC Contract
Construction
General Contract

Capital Stock
/shareholder Debt

Shareholders Agreement

Cooperation Agreement/ PPA

Water Supply
Agreement
National Water
Resources
Administration

Other Shareholders
Shareholders
Agreement

State-owned Electricity
CompanyPLN

Support
Agreements

20.3 Principal Legal Issues


20.3.1 Investment Access
According to 2007 Investment Law and 2010 Investment Industries Policy, the Company can build,
operate and maintain the Project in cooperation of Indonesian government or institutions. Foreign
ownership of the project company is limited to 95% for investors.
20.3.2 Project Company
If the Project Company is planning to build a hydro power station merely to participate in public
electrical power generation and/or transmission, the Company can simply establish a PT PMA in
Indonesia to take charge of such projects (although it may probably seem impractical considering
project financing).
There are no minimum capitalization requirements concerning establishment of foreign investment
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companies in Indonesian laws. It would ultimately be subject to the guides and policies made and
adjusted from time to time by the Capital Investment Coordination Board (BKPM). BKPM expects
that capital of foreign investment for a hydro power station should be no less than US1 million to
US1.5 million per MW of installed capacity, of which equity capital shall amount a quarter. In the
Project, installed capacity of the hydro power station is 450 MW, so the investment capital should
be at least US450 million to US675 million, with equity capital of US112.5 million to US
168.8 million.
20.3.3 Land Acquisition
The issue of land acquisition has become one that the Company should better pay the most attention
to. According to Indonesian laws, the company should submit a Land Acquisition and Resettlement
Action Plan (LARAP) for the Project.
Resettlement compensation can be cash compensation, actual resettlement compensation or others.
The principle is not to lower the land owners living standard. Pursuant to Presidential Regulation
No. 36/2005 and Presidential Regulation No. 25/2006, the amount of resettlement shall be decided
through a process as follows: a draft of resettlement compensation would be negotiated by an
independent appraisal consultant together with land owners and initiators of projects. And then the
draft would be submitted to the Land Acquisition Committee for discussion. It will be finally
decided after the negotiations among the Land Acquisition Committee, the land owners and PLN.
20.3.4 Government Guarantees
The Project can apply to IIGF, PT PII for Indonesian national financial guarantee. The following
conditions shall be met: it should be a PPP project in line with Presidential Regulation No.67/2005,
Presidential Regulation No.13/2010 and Presidential Regulation No.56/2011; it should be in
accordance with relevant trade standards and was appointed through fair, transparent and
competitive tendering process; it should be in line with public interests and is feasible technically,
economically, financially and environmentally; suitable arbitration clause should be included in
cooperation agreement.
Pursuant to Presidential Regulation No. 9/2009 concerning the financing agencies, IIGF, PT PII can
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guarantee risks including government approval, financing failure, legal changes, government breach,
local grid connection, competitive risks, government payment, government demand, price changes,
collection, remittance, force majeure suffered by the government etc.
20.3.5 Grid Connection
Electricity generated in the Project will be sold to PLN directly so the Company might not be
concerned about the issue of grid connection. It is located, however, in remote areas far away from
PLN grid, so it becomes necessary to build transmission cables and transformer stations between
the site and PLN grid. It is necessary to estimate cost for transmission cables and to provide bill of
quantities for building the same.
20.3.6 Investment Incentives
In the Project, the Company can apply to Indonesian government for investment incentives as
follows:
Incentives for encouraged new industries: (1) Import duty exemptions for principal operating
equipment; (2) Import duty reduced to 50% for auxiliary operating equipment; (3) Import duty
exemptions for components to manufacturing principal operating equipment, with a ceiling value of
5% of the equipment value (if exceeded, you will still have to pay duties); (4) Within two years of
commercial operation, import duty exempted for those materials imported at a rate of lower than
5% and reduced to 50% for those imported at a rate higher than 5%; (5) Duty exemptions for
principal operating equipment related consumable articles in the first year; (6) VAT and luxury tax
collection can be delayed for fixed assets imported from abroad or purchase from Indonesian local
market; as long as the abovementioned assets are not sold or changed for other purposes, VAT and
luxury tax can be exempted until the end of depreciation of such assets; or VAT and luxury tax
would have to be collected.
Incentives for investment in certain areas: in the Project, the Karama River, abundant in hydro
resources, is located in remote area where tax incentives can be granted including, inter alia, as
follows: (1) for a finite period net income tax would not be imposed until investment has reached
certain amount; (2) for a finite period import duties for capital goods, machines or equipment that
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cannot be produced in Indonesia can be exempted; (3) for a finite period when certain conditions
are met, import duties on raw materials or auxiliary materials can be exempted; (4) for a finite
period, VAT on capital goods, , machines or equipment that cannot be produced in Indonesia can be
exempted or delayed; (5) accelerated depreciation or amortization; (6) land and construction tax in
certain areas for certain purpose can be reduced or exempted; (7) import duties for existing
investment enterprises to renew machines or other capital goods can be reduced or exempted.
Incentives for foreign investors: (1) Enterprise income tax, at a rate of 25%, can be paid up in six
years, that is paying 5% per year; (2) accelerated depreciation and repayment; (3) during dividend
allocation, income tax rate for foreign invested enterprises is 10%, or according to double taxation
agreement in force at present, lower rate will be applied; (4) deficit offsetting period of more than 5
years can be granted, yet no longer than 10 years; (5) a exemption period from 5 years to 10 years
can be granted to foreign investment project in the field of fundamental metal, oil refining, gas
organism chemistry, renewable resources and telecommunication equipment with an investment
amount of more than US117 million.
20.3.7 Environmental Protection
The installed capacity of the Project is 450 MW for which environmental impact assessment
(AMDAL) and environment permit (EP) would be required for the project company to be granted
IUPTL, according to Law No. 32 /2009 concerning environment conservation and management
20.3.8 Natural Resources
Pursuant to Government Regulation No. 24 /2010 concerning forest utilization, forest resources
protection should be like this: if the Project is located in forest protect zone, an IPHK shall be
acquired from Ministry of Forestry, but compensation is unnecessary for collection of forest land.
Space resources protection: based on Law No. 26/2007 concerning spatial arrangement and other
regulations concerning spatial arrangement, space utilization in the Project shall be in line with
space division plan and approved by the West Sulawesi government.

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Hydro resources: Law No. 7 /2004 concerning water resources regulates that water utilization
approval shall be acquired from National Hydro Resources General Office.

21 Conclusions
(1) Karama No.1 Hydropower project is located at the KARAMA River in the West Sulawesi of
Indonesia, with the catchment area upstream of the dam site of 5,406km2, mean annual runoff
of 14.53 billion m3 and mean annual flow of 460.6m3/s.
(2) As for the normal pool level, 5 schemes of El 100m, El 105m, El 110m, El 115m and El 120m
are compared and analyzed, and finally the El 115m scheme with the highest economic internal
rate of return is recommended. And as for the installed capacity, 5 schemes of 300MW, 350MW,
400MW, 450MW and 500MW are compared, and the scheme of 450MW with the highest
economic internal rate of return is recommended, and the mean annual output of the
hydropower station is 2,412GWh.
(3) According to the seismic zoning map of Indonesia (2010 version), the seismic peak ground
acceleration in the project area is 0.20~0.25g, 0.25g is equal to the basic seismic intensity of
VIII degrees and suggested to be adopted in this phase. The formation lithology of the reservoir
area is dominantly in sandstone, silty mudstone and mudstone of the lamina-medium bed of the
neogene system and the homochronous volcanics and volcanic breccia, the reservoir has a weak
permeability and closure property of the reservoir basin, and no possibility of reservoir
permanent leakage would occur.
(4) According to the survey and design of two dam sites in the planning phase, the formation
lithology of the lower dam site is dominant in the deposited volcanic breccia and tuffites of the
upper Tertiary (N). The rocks are mainly soft rocks, and the rock mass is relatively complete
but the local integrity is poor. The formation lithology of the upper dam site is dominantly in
tuff, volcanic breccia and andesite of the upper Tertiary (N), the rocks are mainly hard rocks
and the rock mass is relatively complete but the local integrity is poor. Considering the
topographic and geological conditions, the lower dam site is suitable for building the local
material dam, and the upper dam site is suitable for building the concrete gravity dam or local
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material dam. Considering the available natural construction materials, downstream of the
lower dam site is relatively rich in natural construction materials and the upper dam site is
relatively lack of natural construction materials nearby and with the farther distance. Through
the technical and economic comparison and analysis, the upper dam site is recommended and
the dam type of roller compacted concrete dam is proposed.
(5) The multi-purpose project is categorized as Class I and the project ranking is as large (I) type.
This project is composed of water retaining structure, water release structure and water
diversion and power generation system. The water retaining structure is the roller compacted
concrete gravity dam, with the crest elevation of El 117.00m. The minimum elevation of dam
foundation is El -2.00m, the maximum dam height is 119m and the dam crest length is 317m.
There are 14 monoliths in total. The water release structure adopts the flood discharging way of
surface hole overflowing, surface hole overflowing monoliths No.711 (5 in total) are
arranged in the middle of riverbed with each of 22m long. Five 14m22m (width height)
surface holes are arranged with total net width of 70m and the total length of overflowing
section is 110m. The diversion system is composed of water intake and diversion tunnel. One
tunnel for two units is adopted as the way of water supply. There are 2 diversion tunnels in total
with the length of the main tunnel of 579.02m. The total construction period of the project is 54
months (from January of the first month to June of the fifth year), and the construction
preparation period is 20 months, the power generation period of the first unit is 49 months (by
the end of the fifth year) and the power generation period of the last unit is 51 months (by the
end of March of the fifth year).
(6) Karama No. 1 Hydropower project will be constructed and operated to produce clean energy,
and its main adverse effect on environment is the reservoir inundation and project land use
within part of ecological environment reserve, but this can be relieved by adopting the
ecological protection and soil and water conservation measures. This hydropower station will
inevitably cause certain adverse effect on the environmental quality in certain range of the
project area during construction period, but the influenced area is relatively small. As long as
the Employer and Contractor are cooperated to implement each environmental protection
measure as mentioned in this report during the construction and operation processes, the
adverse effect to be incurred from this project is local and controllable and is feasible to certain
degree, and no restraint factors exist. The project construction is dominant in favorable effect
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on environments.

22 Suggestions
(1) Currently, there is no practically measured datum about the KARAMA River, and the runoff of
the dam site is obtained only by comparing the runoff information of the nearby river basin. It
is suggested to install a special hydrologic station nearer to KARAMA power station dam site
for water level, flow and rainfall observations.
(2) Considering that the regional faults exist in the reservoir area and the historical seismic activities
exist in the neighboring areas, the seismic risk evaluation will be conducted in the next stage.
(3) It is suggested to replenish and perfect the status survey in the next stage and perfect the
environmental impact assessment analysis and forecast according to the site survey results. It is
necessary to carry out the fish survey and aquatic ecosystem special study so as to provide
evidences for the environmental impact assessment for drawing out a reasonable and
comprehensive evaluation conclusion. It is also required to coordinate with relevant
departments, for carrying out the public participation survey, learning the publics opinions and
suggestions for this project comprehensively and recording the survey results into special report
of environmental impact assessment.

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