The state`s owned company;s Head of New and Renewable Energy Division Mochamad Sofyan here on Wednesday said that the guarantee scheme was not listed in the Minister of Finance`s decree No. 77/PMK.01/2011.
"Developers wanted the guarantee scheme is not during construction only, but starts since the exploration time," he said.
Sofyan said that according to the Finance Minister`s Decree which was signed on April 6, 2011, is only to guarantee the project`s construction period only.
The warrant which will be provided in accordance to the Minister`s decree is a letter saying the government guarantees the state electrical company`s ability to pay obligations under power purchase agreement (PPA) if the company going through a shortfall.
Sofyan said that currently there are at least three geothermal power projects namely Muara Laboh, West Sumatra, Rajabasa, Lampung, and Sokoria, East Nusa Tenggara are awaiting government guarantee.
"The three projects PPA signing have entered the final stages with existing six items that have not been completed and one of them about the guarantee," he said.
He said that in addition to the Minister Decree`s revisions the guarantee will be included in the PPA contract. (*)
Editor: Aditia Maruli Radja
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