Friday, January 23, 2015

Indonesia, Australia:

Raya, Bakrie Plan Sale of 85% in 30 MW Sokoria Geothermal Project (SeeNews Renewables)

Australia's Raya Group Ltd (ex Panax Geothermal) and its Indonesian partner PT Bakrie Power Corp have signed a pact to sell an 85% stake in the 30 MW Sokoria geothermal project in Indonesia to Sydney construction company Space Con Pty Ltd.

Raya said in a press release on Friday that, together with Bakrie Power, it has entered into a heads of agreement on the matter with the Space Con Pty Ltd, which is currently conducting due diligence on the Sokoria project. Once the process is completed, the joint venture partners will sign a final deal with Space Con that would be valued at about USD 3 million (EUR 2.7m).

More specifically, Space Con will be required to pay USD 2 million to Raya and Bakrie and also to pour USD 1 million into an account of the Sokoria project company for project development and working capital. The transaction needs to be cleared by Indonesian state-owned utility PT Perusahaan Listrik Negara (PLN), also known as Persero, which will be buying the plants output at USD 0.125 per kWh. The first 5 MW unit of the geothermal power facility, located on Flores Island, is expected to come online in December 2018, where the whole facility is to reach commercial operations between 2023 and 2024.

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