PGE to receive loan worth $330 million from World Bank

State oil and gas company Pertamina?s subsidiary PT Pertamina Geothermal Energy (PGE) expects to raise up to US$330 million in soft loans from the World Bank to partly finance the development of a geothermal power plant in Ulu Belu, Tanggamus, Lampung, Investor Daily reported on Tuesday.

PGE spokesman Adiatma Sardjito said in Jakarta on Monday that the World Bank loans would be used to finance the construction of the third and fourth units of the Ulu Belu geothermal power plants.

He said that the first and second units of the power plant, each with a capacity of 55 megawatt, were currently under construction, with the financing from Pertamina. The two power plants are expected to begin commercial operation in 2012.

?The third and fourth units, also with a capacity of 55 MW, will be partly financed by the World Bank loans,? he added.

Adiatma said PGE had also won a tender to build the Lahendong and Karaha geothermal power plants in West Java, each with a capacity of 20 MW and 60 MW. In addition, PGE is also now building a geothermal power plant with a capacity of 4 x 20 MW in Kotamobagu, come 250 kilometers from Manado. (*)