Japanese funding to push development of geothermal project in West Sumatra
With more than $440 million in combined funding, Japanese banks are pushing the development of the Muara Laboh geothermal project in West Sumatra.
A recent article provides additional details regarding the financing of the Muara Laboh geothermal project by Supreme Energy and French Engie in South Solok, West Sumatra.
The article highlights the participation of the Japanese lenders that provided up to $440 million in total.
The co-financing was led by the Japan Bank for International Co-operation (JBIC), which has contributed US$198mn from its own book. The Asian Development Bank (ADB) then led a syndicate of commercial banks on the rest of the financing.
The syndicate was composed of Bank of Tokyo Mitsubishi UFJ (BTMU), Mizuho, and Sumitomo Mitsui Banking Corp. (SMBC), with the commercial portion of the debt being covered by Nippon Export and Investment Insurance (Nexi), a Japanese government-owned agency.
With a planned capacity of 80 MW the project is one of the larger new projects launched in Indonesia with likely more to come in the coming years. The project also involves Sumitomo Corp. as EPC contractor for the project.
Source: Global Trade Review