U.S. firm to build geothermal power plants in Banten

The United States-based business group Dealab Group will develop geothermal power projects with total capacity of about 700 megawatt in three locations in Banten province in cooperation with local company Banten Global Development (BGD), Media Indonesia reported on Friday.

The power projects, which would cost about Rp 4 trillion to build, will be located in the province's geothermal rich areas including Rawadano, Pulosari and Mt Karang in the province.

Dealab and BGD, which is owned by the provincial administration, signed the memorandum of understanding (MoU) on the development of the geothermal projects last year.

BGD's president director Yayat Sukiyat said that the construction of power project is expected to be started by the end of this year.

"We hope we will be able to build a geothermal power plant with a capacity of 220 MW in the initial stage of the project," he said.

He said that he hoped a number of administrative procedures, including a sale purchase agreement with state-owned electricity company PLN could be completed this year.

On August 1, 2006, US-based Exim Bank issued a letter of intent (LoI) worth US$400 million earmarked for financing the first stage of the geothermal prower plant construction project, Yayat said. (*)