Ormat Unit Signs Indonesia Project Agreement

The Medco-Ormat-Itochu Consortium, which consists of Medco Energi Internasional Tbk; Ormat International, Inc., a subsidiary of Ormat Technologies, Inc.; and the Itochu Corporation, have signed a Heads of Agreement (“HoA”) for the Sarulla Geothermal Project. In addition to members of the Consortium, Mr. Eddie Widiono, President Director of state-owned Indonesian power company PT Perusahaan Listrik Negara (“PLN”), and Mr. Ari H. Soemarno, President & CEO of Pertamina, also signed the agreement. The signing was witnessed by The President of the Republic of Indonesia H.E. Mr. Susilo Bambang Yudhoyono and the Prime Minister of Japan, H.E. Mr. Shinzo Abe during the Japan-Indonesia Business Forum. The Consortium received a Letter of Intent from PLN on July 25, 2006 following a tender process and, having reached preliminary agreements, expects that it will soon formalize the Deed of Assignment (“DoA”), and amendments of the Energy Sales Contract (“ESC”) with PLN and Joint Operating Contract (“JOC”) with Pertamina. The HoA sets forth the milestones achieved in the contract negotiations and the parties’ undertaking to expedite the contracts finalization and formalization, including all relevant approval procedures. The Sarulla Geothermal Project, located in Tapanuli Utara, North Sumatra, represents the largest single-contract geothermal project to date in the […]

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