PLN says close to acquire Sarulla geothermal project

State electricity firm PLN hopes to be able to close acquisition of Sarulla geothermal power plant project in North Sumatra late June or early July as negotiation between the company and project owner Unocal Corp. went smoothly, a company official said Wednesday.

?Acquisition price will hover around US$ 60 million, and PLN had appointed Italian consultant to conduct due diligence on the project, which is expected to be completed mid-June,? Djuanda, PLN director said.

Djuanda said Unocal had decided to quit the project after the two sides have failed to agree an electricity price for the plant.

The Sarulla project was postponed by the government in 1998 due to the Asian financial crisis and was originally planned to be a 110-megawatt (MW) plant that could have expanded to 390 MW.

Djuanda said after acquisition was completed, PLN would consider tendering the project to find joint venture partner to continue the project.

He said first phase plan was to build 60-MW power plant, which then could be increased to 390 MW. (alex/godang)