IIF to provide financing guarantees for project in Sulawesi, Indonesia
PT Indonesia Infrastructure Finance (IIF) to provide assistance for the construction of a geothermal power plant (PLTP) in Central Sulawesi in form of government guarantee for project PPA.
Reported locally today, PT Indonesia Infrastructure Finance (IIF) will soon provide assistance for the construction of a geothermal power plant (PLTP) in Central Sulawesi, following the signing of a memorandum of understanding (MOU), with the Sulawesi provincial government, to guarantee the utilization of the geothermal funding facility (FDG).
The project itself, will be built in Sigi and the Central Sulawesi town of Palu. The project is being developed under a public private partnership, and therefore assistance is provided to secure funds through FDG.
The support provided includes coordination and support of the auction committee and the preparation and implementation of the bidding process, both for the Geothermal Mining Business License (IUP) for WKP Borapulu and for PLTP PPP.
The Managing Director of the IIF, Kartika Wirjoatmodjo said “mentoring and assistance will be given both to the Central Sulawesi provincial government, and PT PLN (Persero).”
“IIF supports infrastructure development in Indonesia, particularly for projects using a PPP scheme, and takes over the role of a transaction advisor”he said in a press release.
Besides support assistance, the project can obtain now an Infrastructure Guarantee for its Power Purchase Agreement (PPA) in accordance with the provisions of Presidential Decree No. 78/2010 on (the) Assurance of Infrastructure in Government Cooperation Project (Infrastructure Guarantee), and regulation 260/ 2010 of the Ministry of Finance on the Implementation Assurance Infrastructure in Public Private Partnership Projects Business. “The goal is to support the achievement of obtaining more financing or financial close.” He said.
FDG is a facility set up by the Ministry of Finance by Finance Minister Regulation (PMK) No.03 Year 2012 and is maintained by the Government Investment Center (PIP) and has the purpose or benefit to increase the likelihood of achieving funding through banks for the construction of geothermal power plants.
Central Sulawesi governor said the growth and security of supply of electricity in the province of Central Sulawesi should be maintained with the use of renewable energy available in Central Sulawesi.”
Source: Bisnis Indonesia (in Indonesian)