LONDON (dpa-AFX) - GDF SUEZ and International Power Plc (IPR, IPR.L) announced that IPR-GDF SUEZ Asia, together with project partners PT Supreme Energy and Sumitomo Corp., has inked 30-year Power Purchase Agreements, or PPAs, for two 220MW geothermal projects with PLN, the state-owned utility of Indonesia.
The Ministry of Finance of the Republic of Indonesia has issued a Government Guarantee Letter for the two projects, covering the obligations of PLN under the PPA.
Int'l Power stated that the two projects, called Muara Laboh and Rajabasa, are planned to be built on Sumatra island to deliver power to the region which continues to experience high demand growth. Both projects are included in the Indonesian Government's second fast-track programme, of which around 4,500MW should come from geothermal sources.
Subsequent to the confirmation of the resource, project financing and EPC (Engineering, Procurement and Construction) arrangements will be negotiated. Subject to the timing of these, both projects are expected to commence operation in 2016.
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© 2012 AFX News
