E. Java geothermal concessions tender to resume

East Java provincial government will resume tender process for two geothermal working areas in East Java after a new decree has confirmed that the two working areas no longer belong to state electricity firm PT. PLN (Persero).

Tender process for the Blawan-Ijen and Ngebel-Wilis areas has been put on halt earlier this year as the areas were later found out to be still legally belonged to PLN. ?The decree has specifically confirmed that the two areas are now no longer belong to PLN,? Dwi Hartoto, geothermal tender officer at the directorate general of mineral, coal and geothermal, told Petromindo.com on Tuesday.

Dwi said that East Java government would continue the previous tender process. ?The process of the tender is near completion for both two working areas, the only left is the announcement of the winners,? he said.

For Blawan-Ijen, the consortium between Medco and PT Cahaya Ijen Energy is the lowest bidder with price of 8.2 US cents per kwh. Second rank Bakrie Power is offering above 9.7 cents per kwh, he said.

For Ngebel-Wilis, Bakrie Power is offering 7.55 cent s per kwh, PT Rekayasa Industri 7.7 cents per kwh and the Medco and PT Cahaya Wilis Energy consortium offered 8.5 cents per kwh.

The winner will be announced before end of this year, he added. (bernard)