Pertamina secures debt financing of US$1 billion from the World Bank and JICA
Alexander Richter
14 Dec 2009
Indonesian Pertamina secures debt financing totalling around US$ 1 billion from the World Bank and the Japan International Cooperation Agency to develop Lumut Balai geothermal power plant in South Sumatra.
According to local news from Indonesia, “PT Pertamina Geothermal Energy (PGE) acquired loans from the World Bank and the Japan International Cooperation Agency (JICA) to develop Lumut Balai geothermal power plant in South Sumatra.
“We got fund from the World Fund and JICA worth US$500 million each. The JICA fund has a tenure of 40 years,” PGE Managing Director Abadi Poernomo said on Monday, Dec 14.
Abadi said in addition to the World Bank and JICA, the company is still awaiting credit from German state-owned development bank KfW. “The development would likely begin next year,” he said.
As reported, Lumut Balai power plant has a large geothermal resources totaling to 300 MWe.
In addition to PGE’s capital expenditure, the company will allocate US$200 million for the drilling of 27 wells such as Kotamobagu (North Sulawesi), Sungai Penuh (Jambi), six more wells at Lumut Balai, Karaha Bodas, four wells in Ulu Belu (Lampung) and three wells in Lahendong (North Sulawesi).”
Source: Viva News
