Case study: Projects by PT Pertamina Geothermal Energy

Posted: July 29, 2012

PT Pertamina Geothermal Energy (PT PGE) will invest about US$1.5 billion to develop an additional 670 MW of geothermal energy between 2012 and 2016 based on current government plans (see table), according to Gatot Suhermanto, its portfolio and business development manager.

“Several international finance institutions have shown interest to finance PT PGE’s project under a soft loan scheme. Last year, the company signed a loan agreement with the World Bank and Japan International Cooperation Agency (JICA) for three projects,” he says.

The scope of work for the geothermal projects include engineering, procurement and construction (EPC) for steam gathering systems and power plants. As such, EPC companies will have an opportunity to participate in these projects.

In addition, a partnership would be established between a public joint venture (PT PGE and the local government) and IPPs to develop green fields

PT Pertamina Geothermal Energy project development plan