Construction of the $143 million Patuha geothermal plant in West Java will not begin until 2010 because of funding difficulties; completion date has now been pushed to 2012. A $90 million in financing from a consortium of state lenders led by PT Bank Negara Indonesia will be finalized early October 2009. The project is being built by PT Geo Dipa Energy, a jointly owned subsidiary of state oil and gas producer PT Pertamina and state electrical utility PT Perusahaan Listrik Negara, or PLN. Geo Dipa will finance $60 million from its own equity, the rest is to be financed by a consortium led by PT Bank Negara Indonesia Tbk [BNI].
The project is about five years behind schedule because of contract disputes with PT Bumi Gas Energi, Geo Dipa’s former partner which had no money to build the plant. In March 2009, a memorandum of understanding was signed between Geo Dipa and PT Rekayasa Industri, the state-owned company that will be the new main contractor for the project.
Patuha project is now at the basic engineering design stage. Despite the delays, the geothermal contractor, which will also operate the plant, is currently negotiating prices for the electricity to e generated. It wants about 7 cents per kilowatt hour to earn a profit on investment; PLN is only offering 4.5 cents per kilowatt hour.
The Patuha project is the first geothermal plant in the second phase of PLN’s ambitious $17.25 billion ‘fast-track’ power-generation program. Geo Dipa is also seeking investors to provide $600 million for more geothermal projects in Central Java and West Java. - VPC
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‘Fast Track’ Program Losing Steam As West Java Geothermal Plant Stalls (September 04, 2009, Janeman Latul) – The second phase of Indonesia’s ambitious $17.25 billion “fast track” power-generation program is faced with yet another delay. Construction of the $143 million Patuha geothermal plant in West Java won’t begin until 2010 because of funding difficulties, an executive said on Thursday. The long-stalled project, commissioned by state power utility PT Perusahaan Listrik Negara, was to be finished in 2011, but the completion date has now been pushed to 2012. Full power generation of 500 million kilowatt hours per year is not expected to be achieved until 2015 at the earliest.
“We have just received confirmation of $90 million in financing from a consortium of state lenders lead by PT Bank Negara Indonesia. The loans will be finalized by the end of the month or in early October,” said Prakimia Semiawan, chief executive of PT Geo Dipa Energy, which is overseeing construction. The remaining costs are to be financed internally. “The disbursement of the first 20 percent of the loans will happen in the first quarter of 2010,” Prakimia said, after expressing confidence in April that the financing would be disbursed in the second quarter of this year.
Prakimia said the Patuha project was at the “basic engineering design stage,” and that the company would conduct a tender for construction by the end of the year. She said that with the latest delay, the plant was not expected to go into full operation until 2015 or 2016. The geothermal project is now about five years behind schedule because of a contract dispute with PT Bumi Gas Energi, Geo Dipa’s former partner.
Despite the delays, the geothermal contractor, which will also operate the plant, is currently negotiating prices for the electricity to be generated. “We want about 7 cents per kilowatt hour because with that price, we can earn a profit on our investment. However, PLN is only offering 4.5 cents per kilowatt hour,” Prakimia said, adding that Geo Dipa was also seeking investors to provide $600 million for more geothermal projects in Central Java and West Java.
The company reported $12 million in revenue 2008, with Rp 18 billion ($1.78 million) in profit. It expects revenue to rise by as much as 10 percent this year. Geo Dipa is jointly owned by state oil and gas firm PT Pertamina and PLN.
The first phase of the fast track program is expected to add 10,000 megawatts to the national grid by 2012. The second phase, which would add another 10,000 megawatts, is scheduled to be completed in 2016.
http://thejakartaglobe.com/business/fast-track-program-losing-steam-as-w...
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Construction Set to Start on $143m Patuha Geothermal Power Plant in Q2 (March 26, 2009) – The second phase of Indonesia’s ambitious $17.25 billion fast-track power-generation program is expected to get under way in the second quarter with the construction of the $143 million Patuha geothermal plant in West Java Province, officials said on Wednesday. The long-delayed project, expected to be completed in 2011, is being built by PT Geo Dipa Energy, a jointly owned subsidiary of state oil and gas producer PT Pertamina and state electrical utility PT Perusahaan Listrik Negara, or PLN. “We’ll finance about $60 million from our own equity in the form of fresh funds and equipment,” said Prakimia Semiawan, Geo Dipa’s chief executive. “The rest is to be financed by a consortium led by PT Bank Negara Indonesia Tbk [BNI].”
The plant is expected to contribute about 500 million kilowatt hours per year to the national energy grid, she said. “This project is the first geothermal plant in the second phase of PLN’s fast-track plan.”
The project is about five years behind schedule because of contract disputes with PT Bumi Gas Energi, Geo Dipa’s former partner. “We had the project and the money to build it but it was held hostage by a party that lacked the money to build it,” said Sofyan Djalil, the state minister for state-owned enterprises, in a speech announcing a memorandum of understanding between Geo Dipa and PT Rekayasa Industri, the state-owned company that will be the main contractor for the project. Prakimia said the dispute over the previous contract arose because there was no escape clause included and there was no time limit on the former partner’s lack of progress. “Our position on the old contract was pretty weak,” she said.
Khishna Suparto, BNI’s managing director, said the bank would arrange financing for a consortium of banks that would include PT Bank Mandiri Tbk and PT Bank Rakyat Indonesia Tbk. “The banks will finance about $80 million. There are two financing options currently under discussion,” he said, adding that either BNI would be the majority lender or all members of the consortium would split the funding equally.
Geo Dipa is trying to attract new investors for $600 million worth of projects by 2010 in Central Java Province and Patuha, West Java Province, Prakimia said. If the project starts by 2010, it will be in operation by 2014 or 2015, she added.
[http://thejakartaglobe.com/justAdded/construction-set-to-start-on-143m-patuha-geothermal-power-plant-in-q2/270719]