Garut regency opposes construction of Drajat III geothermal plant

Wednesday, June 8 2005 - 02:47 AM WIB

The construction of the third unit the Drajat geothermal power plant in Garut, West Java has been delayed after the local government refused to issue the license and the construction permit for the new geothermal power project, Bisnis Indonesia reported on Wednesday.

"The construction of the new geothermal plant was initially scheduled for commencement in June. But it has been delayed because the Garut government refused to issue the license and the building permit for the project," said Deddy Supardi, the field community development coordinator of PT Chevron Texaco Indonesia Energy (CTIE), the operator of the Drajat geothermal power plant.

Deddy said in Bandung on Tuesday that the local government refused to issue the permits because it felt that the geothermal power plants would not give fair financial contribution to the local people.

The new geothermal power plant which will have a generating capacity of 105 MW, will be the third geothermal power unit to be operated by CTIE in Drajat. The first and second geothermal power units ( Drajat I and Drajat II) have been in operation for years. CTIE has appointed PT Thiess to build the new geothermal plant.

The local government said that it did not issue the permits because CTIE had refused to pay a fair financial contribution to the local people. "We decided not to issue the permits because the developer had failed to fulfill its promise to give financial benefits to the local people," said Uu Saepuddin, a senior official of the Garut regency administration.

"We have talked the matter with the Garut regent. Some important issues have been raised," Deddy said. (*)

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