PGE in talks to raise $2b loans to develop geothermal portfolio
Friday, October 16 2009 - 04:10 AM WIB
PT Pertamina Geothermal Energi (PGE), a geothermal unit of state oil, gas company PT Pertamina, is in talks with international banks to obtain US$ 2 billion loans to develop its geothermal properties in Sumatra and Sulawesi.
CEO Abadi Poernomo told Petromindo.com that PGE might be able to clinch US 1 billion loan deal this year with Japan International Cooperation Agency (JICA) this year.
Loan from JICA will be used to finance construction of its Lumut Balai geothermal prospect in South Sumatra and Ulu Belu in Lampung.
Abadi said PGE also hold talks to obtain $500 million from World Bank to expand capacity of its Lahendong power plant in North Sulawesi.
Other banks that may pledge $500 million loan to PGE include Asian Development Bank and German KfW.
Abadi said PGE would need $2 billion loans do develop its geothermal portfolio over the next five years to bring 1,300-MW of new geothermal capacity. (bernard)