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Central Java geothermal tender requires US$10m guarantee

Mount Slamet, Central Java, Indonesia (source: flickr/ stwn, creative commons)
Alexander Richter 5 Feb 2010

The provincial administration in Central Java requires a guarantee of US$10 million of the winner of tender for the building of a geothermal power plant in Ungaran, Semarang regency.

In news from Indonesia, it is said that “The Central Java provincial administration required a guarantee of Rp100 billion of the winner of tender for the building of a geothermal power plant in Ungaran, Semarang regency.

Head of the Central Java energy and mineral resources (ESDM) agency Teguh Dwi Paryono said here Wednesday that the guarantee is proof of the readiness of the tender winner in carrying out the project. He said this is based on past experience in other areas where nothing had been done with a geothermal power plant project.

“If the tender winner cannot carry out the work, the Rp100 billion will fall into the hands of the provincial administration. But if the project goes smoothly, the money will become part of the investment,” he said.

The Central Java administration will also set up an independent team which will examine the financial condition of the tender winner.

Right now eight companies will be taking part in the tender, five of whom had already submitted their bids,” he said. The five companies include Medco Geoenergy, Bakrie Power, and Arta Aneka Tambang.

Teguh added that the winner of the tender will be announced in March 2010.”

Details on the project can be found here (original link in Indonesian)

Source: Antara News