Panax informed of geothermal PPA finalization
Friday, June 22 2012 - 03:29 AM WIB
Australian-listed Panax Geothermal Limited (Panax) said it had received written advice from state utility PT PLN informing that PLN, the ministry of energy and mineral resources, and ministry of finance, have finalized terms of Power Purchase Agreements (PPA) for its Sokoria Geothermal Project, and Dairi Prima Geothermal Project.
It announced in a press statement on Friday that the final execution copies of the agreements were now being reviewed and prepared. Based on the written advice received, execution of these agreements is expected to occur shortly.
According to the company, the final versions of the agreements are now being finalized into executable format to enable final legal review and execution by all parties concerned.
The finalization of these agreements is a significant milestone for the company and will be the key to enable Panax to proceed with finalizing required project financing for these two projects.
The final commercial terms in each of the PPA are in line with the commercial terms previously disclosed to the market.
Panax said that Panax and Bakrie had continued to make very substantial progress towards finalization of the PPA with PLN for the Ngebel Geothermal Project in East Java.
The scope of the Ngebel Geothermal Project is now likely to be expanded to provide the developer (Panax and Bakrie) with the rights to also develop the transmission-related aspects of the Ngebel Geothermal Project. Both Panax and Bakrie have been buoyed by the manner and timeliness in which these negotiations are progressing and the opportunity to advance the scope of the Ngebel Geothermal Project, by taking responsibility for the transmission-related aspects of the project.
Such responsibility will provide an opportunity for an increased electricity tariff to Panax and Bakrie, and will provide increased certainty over the timing and deliverability aspects of this large 165 MW project.
Panax Geothermal has an established Alliance Agreement with PT Bakrie Power (part of the IDX-listed, PT Bakrie and Brothers Group) to work co-operatively on near term geothermal development and production projects in Indonesia.
Panax?s portfolio? has the capacity to generate more than 300 megawatts of clean electricity, with approximately 165 megawatts net to Panax.
Editing by Benget Besalicto Tnb.