WB to finance Indonesia?s geothermal project

The World Bank has agreed to arrange US$300 million in loan to help geothermal producer PT Pertamina Geothermal Energy (PGE) build two geothermal power plants in Ulubelu, South Sumatra, and Lahendong, North Sulawesi, The Jakarta Post reported on Thursday.

The bank said Wednesday that $175 million of the loan came from the International Bank for Reconstruction and Development and $125 million came from the Clean Technology Fund.

?The World Bank is pleased to be able to support Indonesia?s efforts to positively impact global climate change. This important project is the first approved Clean Technology Fund operation in the East Asia Region,? said World Bank Country Director for Indonesia, Stefan Koeberle.

?We appreciate the World Bank?s support to PGE to contribute to efforts to utilize clean energy in meeting Indonesia?s growing power demand,? PGE president director Abadi Poernomo said.

When completed in 2015, the Ulubelu plant will provide 110 megawatts (MW) of electricity and another 40 MW in Lehendong. The output will replace similar capacities from coal power plants, reducing pollution. (*)