Japan-based Marubeni has secured an engineering, procurement and construction contract from state utility Perusahaan Listrik Negara (PLN) to build a geothermal plant in West Java, Indonesia.

The plant will be owned by Geo Dipa Energy and is part of the second phase of a project to add 10,000MW of power to PLN’s capacity.

Upon completion, the plant is expected to generate 400MW of power, which is sufficient to supply electricity to 60,000 households.

The plant is expected to start supplying electricity from 2013 to the electricity grid for Java and Bali.

Geo Dipa secured a loan of $103m from state-run Bank Negara Indonesia last year to fund the first part of the project, reports the Jakarta Post.