May 4 2010
The Medco-Ormat-Itochu-Kyushu Consortium (the consortium) has inked the ‘Sarulla Project Joint Confirmation’ agreement with PT Perusahaan Listrik Negara (PLN), an Indonesian power company, confirming changes to the Energy Sales Contract (ESC), with PT Pertamina Geothermal Energy (PGE), the concession holder, signing as witness.
The consortium consists of Kyushu Electric Power Co. Inc., Itochu Corporation, Ormat International Inc. and Medco Energi Internasional Tbk. In 2007, the ESC was established for generating 330 MW of power under Sarulla Geothermal Project.
The companies have consented to amend the price of energy sold to US 6.79 cents/kWh. The companies have also consented on a 90-day schedule to resolve certain contractual amendments meant for enabling project financing.
Located in North Sumatra Province’s Tapanuli Utara District in Indonesia, the Sarulla Geothermal Project is a highly productive, large-scale producer of geothermal energy. As per the Joint Operating Contract (JOC), the Sarulla Geothermal Project will be operated and owned by the members of the consortium. The project is likely to be built in three separate phases, with each of the phases using the Combined Cycle 110–120 MW geothermal plant facilities of Ormat Technologies, Inc., which is the parent company of Ormat International Inc. Construction on all the three phases is likely to be finished in the next five years.
The project is likely to cost around $1.0 billion, including power plants, drilling of wells and surface facilities for gathering and disposing steam. The major portion of the financing is likely to be provided by the Japan Bank for International Corporation as per the Umbrella Note of Mutual Understanding.
Source: http://www.ormat.com/