Wika to start drilling at W. Java geothermal prospect

Indonesia-exchange listed construction firm PT Wijaya Karya Tbk. (Wika) said it and partners would start first drilling in its Tampomas geothermal prospect in West Java by the end of this year.

The company said in presentation material to the bourse on Monday that it and its partners have completed final survey report and it is expected to complete the project permit by the end of this year.

The geothermal plant is expected to start operation in 2014, which located in Sumedang regency has potential to generate 40 MW of electricity, it said.

The plant would be built based on IPP system, in which all electricity generated would be sold to state electricity firm PT PLN under 30 years contract.

Wika is majority stakeholder in the project with 55 percent stake, PT Jasa Sarana holds 40 percent stake and the remaining 5 percent is hold by PT Resources Jaya Teknik Management Indonesia (RMI). (denny)