News

EPC/ Rekayasa Industri to up investment for Sukarame project

Cisolok Geyser, Philippines (source: tripholiday.net)
Alexander Richter 22 Nov 2011

EPC contractor PT Rekayasa Industri (Rekind) is going to add its investment for the Cisolok – Sukarame Geothermal Power Plant up to US$370 million, of which it will seek 70% in debt financing.

Reported yesterday from the Philippines, “EPC contractor PT Rekayasa Industri (Rekind) is going to add its investment for the Cisolok – Sukarame Geothermal Power Plant up to US$370 million.

Director Nieke Widyawati told reporters that such additional investment is necessary following results from Geology & Geophysics survey, which confirmed that the plant’s electricity capacity might be boosted to 120-140MW from the present 45MW.

Nieke says the company will search for loans to finance 70% of the project cost, while the balance will be taken from internal generated funds. Up until now, the Director claims Rekind has splashed US$10 million of funds into the project.

On the company update, Rekind participates in the tender for Engineering, Procurement, and Construction (EPC) for the Cisolok-Sukarame plant. After the work, Rekind will discuss about power purchase agreement (PPA) with state utility PT PLN.

The company has clinched deal with local government for US$6.7 cent per kWh for electricity, but such price might be changed post PPA, pointing to Regulation of Ministry of Energy & Mineral Resources No. 2/2011 where the maximum geothermal electricity price stood at US$9.7 cent per kWh.”

Source: The Indonesia Today