PLN spends $16 million on Dieng-Patuha power project

State electricity firm PT PLN has put US$16 million into PT Geo Dipa to try out a 60-megawatt geothermal power plant in Dieng, Central Java, Koran Tempo daily reported on Monday.

PLN president director Eddie Widiono said over the weekend the $16 million was part of the total amount it would have to provide for the operation of the power facility. Eddie however could not mention the exact amount required to operate the project, while PLN financial director Parno Isworo estimated PLN might have to inject a total of $21 million into Geo Dipa for the so-called Dieng-Patuha project.

PLN owns 37 percent of the newly formed Geo Dipa, while the remaining 63 percent goes to state oil and gas firm Pertamina.

Eddie said the Dieng power plant was expected to be fully operational in the near future. He added Geo Dipa would also operate another 60-megawatt power generating unit to be developed by PLN and Pertamina near the current plant.

The Dieng project had been initially developed by California Energy from the United Sates which pulled out from Dieng after the government suspended the project in 1998 after severe economic crisis hit Indonesia.

The Indonesian government paid California energy compensation worth $260 million through the U.S. government owned insurer OPIC based on an order from an international arbitration panel. (*)