RI to get $500 million from ADB to finance geothermal projects

The Indonesian government expects to receive loans worth US$500 million from the Asian Development Bank (ADB) to finance development of three geothermal projects, an energy official said.

Djajang Sukarna, the secretary of the directorate general of new and renewable energy at the energy and financial resources ministry, said in Jakarta last week that the three projects would include PLTP Karaha Bodas (2x55 Megawatt), PLTP Sungai Penuh (1x30 MW) and PLTP Mataloko (2x2,5 MW).

"The loan will be used to finance all stages of the projects from the exploration until the construction of power transmission facilities,? he said, adding, however, that the development would be focused on PLTP Karaha Bodas and PLTP Mataloka, because the development of PLTP Sungai Penuh which is located in a protected forest area could be delayed.

According to him, the geothermal law should be first amended to allow the construction of the PLTP Sungai Penuh.

Djajang said the government hoped that the loan agreement could be signed this year so that the disbursement could be made next year. (godang)