Government to hold tender for Ciremai geothermal area this month
Monday, November 14 2016 - 05:33 AM WIB
The government via the Ministry of Energy and Mineral Resources plans to hold tender for the Ciremai geothermal working area in West Java Province at the endo this month.
Director of Geothermal at the ministry Yunus Saefulhak said on Monday that the tender process is expected to be completed quickly, hoping that the winning bidder can be announced in the following month.
He said that Energy Development Corporation and Hitai Group from Turkey had earlier expressed interest in the geothermal working area, where a 110 MW power plant will be developed.
He said that assuming investment requirement of Rp 4 million per MW, total investment requirement for the 110 MW power plant project is estimated at Rp 6 trillion.
PT Jasa Daya Chevron (JDC), a subsidiary of American energy giant Chevron Corporation, returned early last year to the government the Ciremai geothermal working area in West Java, where it initially planned to develop 2x55 MW geothermal power plant.
A government official said that Chevron returned the working area because the temperature of (geothermal steam) in Ciremai is about 180-200 Celcius degrees, which is too low, meaning it lacks heat. But a source said that the local communities had opposed the project.
Editing by Reiner Simanjuntak