PT PLN to take over Sarulla project in North Sumatra
State-owned utility PT PLN announces plans to take over construction of the Sarulla geothermal power plant project in North Sumatra from a JV with Medco Energi, Ormat International and Itochu Corp.
Reported from Indonesia, “State electricity utility PT PLN on Tuesday announced plans to take over the construction of the Sarulla geothermal power plant in North Sumatra from a consortium comprising Medco Energi Internasional, Ormat International and Itochu Corporation.
The decision was made after negotiations with consortium member companies had not concluded, PLN president director Dahlan Iskan said in a press statement.
Because of this, the construction of the power plant could be delayed, Dahlan said.
“PLN has completed all its [internal] negotiations, but negotiations among investors and other related parties have not been completed,” he said.
The firm has assigned its planning division to formulate a plan to begin the construction of the power plant this year, he said.
The Sarulla power plant is planned to have a total capacity of 3×110 megawatts. Earlier, the consortium said it would invest up to US$600 million for the plant.”
Source: The Jakarta Post