Geo Dipa has better chance to win Sarulla geothermal project

With an offering price of US$0.04455 per kWh, PT Geo Dipa Energi has a better chance to win the Sarulla geothermal power project which will be built in North Sumatra, outbidding its main rival PT Medco Energi Internasional.

PLN's director for power generation and prime energy, Ali Herman Ibrahim, said Friday in Jakarta on Thursday Geo Dipa's offering price put forward during the re-auction of the project on Wednesday was much lower than the US$0.04642 offered by Medco Energi.

"Both companies' offering prices are lower than PLN's limit of US$0.048 per kWh," he said.

Sarulla geothermal power project had to be re-tendered because the bids provided by Medco and Geo Dipa, which were short-listed from the pre-qualification tender early last year, were still far higher than PLN's standards.

The geothermal project, first developed by Unocal, will have the capacity to produce 330 MW. PLN took over the project last year after Unocal quit the project. (godang)