PLN, AEI in partnership deal to develop geothermal projects

State electricity firm PT Perusahaan Listrik Negara (PLN) would set up public private partnership with consortium of Ashmore Energy International (AEI) to develop a geothermal projects with a capacity of 2,000 megawatt electric (MWe) in Indonesia, Bisnis Indonesia reported on Monday.

The implementation of the US$4 ? US$5 billion-worth project would be preceded by the establishment of public private partnership involving subsidiary of PLN, said PLN?s Senior Office for Primary Energy Management Udibowo Ciptomulyono in Jakarta last week.

?Draft agreement on the joint cooperation is discussed internally by PLN and will be signed in the near future," he said.

In the meantime, President Commissioner of PLN Alhilal Hamdi said that the company?s board of commissioners approved the company's intention to set up a subsidiary to operate in integrated upstream and downstream geothermal sector.

?For the purpose, the company prepared Rp 500 billion for authorized official of the subsidiary,? he said.

PLN have eyed several working areas that include Seulawah Agam in Aceh, Cisoslok, Ciremai, Tangkuban Perahu in West Java, Ngebel and Arjuno in East Java.

AEI is a US-based company venturing in the development and operation of energy infrastructure in developing countries.

In cooperation with PLN, the company would establish a consortium involving Abu Dhabi-based firm Mubadala Development Corp, U.S. based-firm Arctas Capital Group, PT John Whebble & Associates Indonesia along with its affiliate Asia Power Consultants. (*)