PLN to transfer Sarulla geothermal power to Medco

State electricity company PT PLN will transfer the Sarulla geothermal project in North Sumatra to publicly listed energy firm Medco Energi International Tbk. following the withdrawal of the winner of the project.

Medco ended up as the second preferred bidder in last year?s tender which was won by Geo Dipa Energi, a joint venture of PLN and state oil and gas company PT Pertamina.

PLN?s acting president director Djuanda Nugraha Ibrahim said during a haring with the House of Representatives on Monday the transfer of the project to Medco would be carried out once it was approved by Pertamina.

PLN?s spokesman Murtaqi Syamsudin explained that one of the reasons behind Geo Dipa?s pullback was its difficulties to raise funds for the project.

Medco offered to sell Sarullas? power at 4.67 US cents per kilowatt hour (kWh).

The power plant is designed to have six power generation units each with the capacity of 55 megawatts. Minister of Energy and Mineral Resources Purnomo Yusgiantoro said last year the construction of the power plant was expected to start in August this year and it was expected to start operation in 2009 and run at full capacity of 295 MW in 2010. (Godang)