ADB approves $350 million loan to Sarulla project

Tigalingga, North Sumatra, indonesia (source: flickr/ rio gonzales, creative commons)
Alexander Richter 5 Dec 2013

With the approval of $350 million by the Board of the Asian Development Bank, the Sarulla project in Indonesia has now secured a large part of its required debt of a total investment need at $1.5 billion.

Announced via Twitter today, the Board of the Asian Development Bank (ADB) has approved a $350 million loan to the Sarulla project in Indonesia.

The project is a collaboration of Itochu Corp., Kyushu Electric Power, Ormat International and PT Medco Energi. The project has a planned capacity of 330 MW and a potential start in early 2016. The project is located in the Sarulla region in North Sumatra.

The overall investment need for the project is estimated at about US$1.5 billion. About $1 billion of the costs will be funded by loans from the Japan Bank for International Cooperation (JBIC) and the Asia Development Bank (ADB). So more than one third of the funding for the project has now been secured.

Source: ADB, ADB Climate Change Team, The Jakarta Post