Hawkins Construction has secured two geothermal power projects in Indonesia, solidifying the NZ company’s drive to secure work offshore. The Lumut Balai and Karaha geothermal power stations will be delivered in joint venture with Indonesian partner Banguan Cipta Kontractor (BCK) for the state-owned Pertamina Geothermal Energy. Click here to read Hawkins’ press release.
These projects in the Pacific will give New Zealand based engineers and contractors experience working in different environments and are also likely to bring further opportunities to New Zealand based suppliers. This is supported by Roger McRae, managing director of McConnell Dowell who was quoted in last weeks’ Herald (click here for the article) about the projects underway in the Pacific that will give ‘young engineers the opportunity to gain experience but also to make a real difference to the lives of so many people.’
However, it is also essential that parties consider the risk of undertaking projects in foreign countries with potentially unknown conditions. One strategy is to mitigate these risks through joint venture arrangements with local entities that can mitigate that risk to the New Zealand based contractors. The two Indonesian projects are a good example of these risks being mitigated – Hawkins Group CEO Geoff Hunt says that the company is ‘utilising specialist knowledge and skills that we have developed on geothermal projects in New Zealand, and [partnering] with local contractors to best utilise combined expertise.’