Supreme Energy seeks loans from JBIC, ADB for geothermal project
Friday, November 17 2017 - 02:11 AM WIB
Independent power producer PT Supreme Energy is seeking loans from international lenders such as Japan Bank for International Cooperation (JBIC) and the Asian Development Bank (ADB) to help finance its 86 MW Rantau Dedap geothermal power plant (PLTP) project in Muara Enim, South Sumatra Province.
?Financial close is targeted to be reached in the first quarter of 2018. We?re currently in talks with JBIC and ADB,? said President Commissioner and Chairman of Supreme Energy, Supramu Santosa to Petromindo.com on Thursday.
He said that the project is estimated to require investment of Rp 8.2 trillion, of which about 30 percent to be internally funded, and 70 percent to be funded by loans. He said that the power plant project is targeted to start operation in 2020.
He said that once the financial close has been reached, the company will immediately start drilling program, probably in May or June of next year, to be followed by construction process.
Supreme has signed the power purchase agreement of the project with state-owned electricity firm PT PLN, under which the electricity output from the PLTP Rantau Dedap will be sold to the utility firm at a price of 11.76 US cents per kWh.
Editing by Reiner Simanjuntak