Geo Dipa preps geothermal exploration in Eastern Indonesia
Having signed two agreements with the World Bank and PT SMI, PT Geo Dipa Energi is now preparing geothermal exploration for project in Eastern Indonesia.
PT Geo Dipa Energi (Persero) has signed two agreements, together with the World Bank and PT Sarana Multi Infrastruktur (Persero) (SMI), on May 31, 2021. The agreement is a Project Agreement between Geo Dipa and the World Bank, as well as a Subsidiary Agreement between Geo Dipa and SMI. We previously reported on the funding having been made available through the World Bank for government-driven geothermal exploration in Indonesia.
Riki Firmandha Ibrahim, President Director of Geo Dipa, said that this agreement is a derivative of the previously signed Grant Agreement Amendment.
Broadly speaking, the objective of the project stipulated in the agreement is to facilitate geothermal exploration, as an important part of the geothermal power plant investment process that reduces greenhouse gas (GHG) emissions.
“This is done for geothermal development in eastern Indonesia such as Waesano,” said Riki, this week.
With the signing of this agreement, the process of sharing project responsibilities between Geo Dipa, the World Bank and PT SMI becomes clearer and measurable. This agreement stipulates that the World Bank is the grant provider, PT SMI is in charge of financial management, Geo Dipa is in charge of technical, procurement, and protection for project implementation.
Riki said with this Geo Dipa to be able to coordinate the full execution of the work at the site in the designated area. “It also regulates a mechanism so that as an executor, Geo Dipa can carry out work with the principles of anti-corruption, good governance and prioritizing environmental and social sustainability,” said Riki.