Local banks to provide loan for Patuha project

Three local banks Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia (BNI), all of which are state owned, have signed a commitment to providing financing for the Pathua geothermal power plant to be developed by PT Geo Dipa Energy (GDE).

GDE, a subsidiary of state owned oil and gas firm PT Pertamina, signed the loan commitment on Wednesday at the office of State Minister of State Enterprise. The Patuha power project, which is located in Mount Patuha, near Bandung, the capital of West Java province, is estimated to cost US$143 million.

?The Patuha field has a wellhead reserve of 60 MW ready to be developed. We shall build the Patuha Unit 1 with the capacity of 55 MW,? GDE?s President Director Praktimia Semiawan said, adding the firm had signed a cooperation agreement with PT Rekayasa Industri which is expected to carry out pre-EPC preparation works.

According to the company?s website, the Patuha area has geothermal resources of up to 400 MW.

The Patuha power project is among those to be developed under the Phase II 10,000 MW fast-track program, including 4,733 MW from geothermal power projects.

The syndicated loan for the project will be arranged by BNI. The bank?s President Director Gatot Suwondo said the bank was committed to providing Rp 80 billion for the Pathua project, while the two other banks were still in talks about the amount of their respective loan commitment. (Denny)