Medco, partners in loan talks wit JBIC to finance N. Sumatra geothermal project
Monday, August 20 2007 - 04:53 AM WIB
JSX-listed energy firm Medco Energi Internasional is asking Japan Bank for International Cooperation (JBIC) to take part in financing its proposed Sarulla geothermal power project in North Sumatra.
CEO Hilmi Panigoro told reporters on Monday that the talks with JBIC had just started.
Medco, which teamed up with Reno-based firm Ormat International and Japanese firm Itochu Corp. to develop the project, which has potential capacity of 340 megawatts.
The consortium would sell electricity generated from the plant to state lectricity firm PLN at 4.64 US cents per KWH for 30 years.
The project investment is estimated to be around US$600 million.
Hilmi did not say the fund the consortium was looking to raise from JBIC.
Sarulla is one of the projects that are going to be signed in Japan-Indonesia Economic Partnership Agreement (EPA) on Monday in Jakarta. (godang)