PLN pledges to resume Dieng and Patuha power projects

State owned electricity company PLN has pledged to resume geothermal power projects in Dieng, Central Java and in Patuha, West Java although state oil and gas company Pertamina withdrew from the two projects.

PLN director Eddie Widiono said in Jakarta on Monday that Pertamina initially agreed to jointly finance the projects by providing certain amount of funds. But the oil and gas company later backed of the partnership plan.

The Patuha and Ding projects were initially developed by Mid American Energy Holdings Co but they were postponed in early 1998 as part of the government?s retrenchment program to cope with the country?s financial crisis.

As the consequence, the government has been ordered to pay claim of U$260 million to the U.S-based insurance agency OPIC and another $140 million to lenders.

In order to raise funds for the claim settlement, the government has decided to resume the Dieng and Patuha power projects which will each have a capacity of 60 MW. But for the purpose, the government needs to inject a fresh investment of about $440 million. (*)