TEMPO Interactive, Jakarta: PT Medco Energi Internasional will build a geothermal-powered electricity generating plant (PLTP) in Sarula, North Sumatera, through its subsidiary company PT Medco Power, at a cost of US$600 million (Rp5.4 trillion).
The project, with a capacity of 330 megawatts, will be developed in coordination with Ormat Technologies (United States) and Itochu Corp. (Japan).
President Director of Medco Power Fazil Erwin Alfitri said that currently the project was entering the phase of contract negotiation with PT PLN and PT Pertamina as the owners of the working area.
Medco will act as the operator in the project.
“We are expecting that the contract negotiation will be completed this May,” he told Tempo in Jakarta, last Tuesday (04/03).
Fazil explained that PLTP Sarula will be constructed in three phases with each phase estimated to require funds of US$200 million and the production capability of each phase will be 110 megawatts.
“The first phase of the development will be started by 2010. The second and third phases will be set up by early and late 2011,” he said.
According to Fazil, 30 percent of the financing for the electricity generating plant will use the company's internal funds.
“Loans will be taken from a combination of commercial and export-credit banks, such as Japan Bank International Corporation,” said Fazil.
Medco Energi owns 99 percent of shares in Meco Power.
In addition, 41.69 percent of Medco Energi’s shares are owned by the general public.