PLN takes over development of Sarulla geothermal plant
Rangga D. Fadillah, The Jakarta Post, Jakarta | Wed, 06/01/2011 4:25 PM
State electricity utility PT PLN on Tuesday announced plans to take over the construction of the Sarulla geothermal power plant in North Sumatra from a consortium comprising Medco Energi Internasional, Ormat International and Itochu Corporation.
The decision was made after negotiations with consortium member companies had not concluded, PLN president director Dahlan Iskan said in a press statement.
Because of this, the construction of the power plant could be delayed, Dahlan said.
“PLN has completed all its [internal] negotiations, but negotiations among investors and other related parties have not been completed,” he said.
The firm has assigned its planning division to formulate a plan to begin the construction of the power plant this year, he said.
The Sarulla power plant is planned to have a total capacity of 3x110 megawatts. Earlier, the consortium said it would invest up to US$600 million for the plant.
