Hawkins, Alstom in joint bid for Karaha Bodas geothermal power project

Auckland-based construction company Hawkins is jointly bidding with French electricity giant Alstom to build the multimillion-dollar Karaha Bodas geothermal power plant, in West Java, for state-owned Pertamina Geothermal Energy (PGE), a report said on Friday.

If the bid is successful, Hawkins energy manager Bernard Hill was quoted as saying by stuff.co.nz that it will bring in a consortium of New Zealand firms covering engineering, subcontracting, legal, banking and insurance sectors.

Karaha Bodas, which would be Hawkins' first foray into overseas geothermal construction, represents only a small portion of US$15 billion (NZ$18.8b) in investment the Indonesian government is aiming to attract over the next five years.

The project, locally known as PLTU Karaha Bodas, is one of six geothermal power plant projects PGE plans to build within the next four years. The other five are PLTU Ulubelu in Tanggamus, Lampung, PLTP Hululais in Bengkulu, PLTP Lumut Balai in South Sumatra, PLTP Sungai Penuh in Jambi and PLTP Kotamobagu in North Sulawesi.

Project delays in the Indonesian geothermal industry have caused headaches for local and international companies, including many New Zealand firms, in recent years.

However, Tisnaldi, who heads the government's geothermal directorate, expects a sharp pick-up in activity with the establishment of a new wholesale pricing regime, and streamlined regulations to improve access to forestry areas - beneath which lie most of the archipelago's volcanic steam-fields. The government is also eyeing incentives covering customs duties and import tax exemptions for international players. (*)