Govt denies approving BumiGas?s plan to build geothermal power plants

The government denied Tuesday a report that it has given an approval to PT BumiGas Energi Indonesia regarding its plan to build two geothermal power plants in Dieng, Central Java and Patuha, West Java, saying that up till now, a permit for the projects has yet to be issued.

?No, we have not appointed the company (BumiGas Indonesia) nor issued a permit,? said director general of electricity and energy utilization J. Purwono in Jakarta.

Reports in Kuala Lumpur, Malaysia, said earlier that Indonesian firm PT BumiGas Energi plans to raise US$308 million by selling bonds to finance the building of two geothermal power plants, with lead arranger Malaysian investment banking Affin Investment Bank as underwriter.

Affin said in a statement earlier that BumiGas Energi Indonesia will build a 120 megawatt plant in Dieng, central Java, and a 180 megawatt facility in Patuha, west Java, at a total cost of US$400 million over four years.

The statement said that BumiGas would team up with Malaysia?s Transmit Nanyang Engineering Construction Sdn Bhd. (godang)