Wika to build geothermal power plant

Through its newly established subsidiary PT Wika Jabar Power, state owned construction company PT Wijaya Karya Tbk (WIKA) will build a geothermal power plant in West Java to further expand the company?s electricity business portfolio, Kontan reported on Saturday.

WIKA?s corporate secretary Natal Argawan said in Jakarta on Friday that PT Wika Jabar Power had secured a permit to develop geothermal resource and build geothermal power plant in Sumedang, West Java.

?We are currently conducting seismic survey,? he said, adding that after the survey, the company would carry out drilling works. In the first stage, the company plans to drill seven wells in its geothermal concession areas. Drilling cost will reach about US$5 million for each well.

Natal said that Wika Jabar would need at least $110 million in investment in developing the geothermal power plant project, which will have a capacity of 40 megawatt. WIKA holds 55 percent stake in Wika Jabar, with PT Jasa Sarana and Jaya Teknik Management holding the other 40 percent and 5 percent, respectively.

In addition to the new subsidiary?s business, WIKA recently has secured the government?s permit to build a geothermal power plant with a capacity of 1 x 25 MW in Rawa Minyak. The company will invest about Rp 170 billion in this project.

With the development of the Rawa Minyak geothermal project, WIKA has five electricity projects, which are expected to contribute at least 10 percent of the company?s future earnings.(*)