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State companies join forces to construct geothermal plant
PT Geo Dipa Energi (GDE), inked a deal Wednesday with state engineering company PT Rekayasa Industry and state-run Bank Negara Indonesia (BNI) to construct and finance a geothermal power plant in West Java
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PT Geo Dipa Energi (GDE), inked a deal Wednesday with state engineering company PT Rekayasa Industry and state-run Bank Negara Indonesia (BNI) to construct and finance a geothermal power plant in West Java.
GDE is a joint venture company of state oil and gas company PT Pertamina and state power company PT Perusahaan Listrik Negara (PLN).
The geothermal project, located in Patuha, Bandung, West Java, will have a capacity of 55 megawatt (MW) from a potential of 400 MW.
"This project is very vital to the second phase of the country's 10,000 MW energy crash program because 4,733 MW of it will be powered by geothermal energy, including from this one," said GDE president director Praktimia Semiawan said.
She said the construction of the Patuha plant was to be completed in two years and fully operational by late 2011, generating around 500 million KWH per year, saving PLN production costs of about Rp 750 billion (US$65.2 million).
Praktimia said a diesel-fueled power plant usually cost about Rp 2,250-Rp 2,500 per KWH while the recurrent cost of geothermal energy was about 8 US cents per (Rp 900).
Praktimia said the construction of the Patuha plant would cost GDE $143 million, of which about $80 million would be financed by a syndicated loan of state banks while the rest would be from company equity. "We have appointed state BNI as the syndication leader for the loan," she said, adding other state banks -- Bank Mandiri and Bank Rakyat Indonesia (BRI) -- were included.
BNI president director Gatot M. Suwondo said the bank was very much interested to finance power plant projects in line with the government strategy to improve the country's business infrastructure.
He said the lender had disbursed around Rp 8.32 trillion for power plant projects by December last year.
The proposed power projects were located in Cikarang, Indramayu, Rembang, Wayan Windu in West Java; Cilacap, in Central Java; Palu and Poso in Central Sulawesi; Pangkalan Bun in Central Kalimantan; Sibayak in North Sumatra; and Bintan in Riau Islands.
As well as Patuha, GDE is developing geothermal sources in Mount Dieng in Central Java, with a potential capacity of 400 MW. The company has already installed a 60 MW power plant there.
Geothermal energy will play an important role in the second phase of the 10,000 MW crash program. Geothermal energy sources are expected to power nearly half of the projects in the program. Hydro-power will account for 1,174 MW, with coal and gas provide the remaining 4,056 MW. (fmb)
