JBIC and Japanese banks to loan $440 million for 80 MW Muara Laboh project, Indonesia

Taman Hutan Raya Bung Hatta, Solok, West Sumatra, Indonesia (source: flickr/ Daniel Wilder, creative commons)
Alexander Richter 26 Jan 2017

The development consortium of Sumitomo, Supreme Energy and Engie have secured loan financing of up to $440 million for its 80 MW Muara Laboh geothermal power project in West Sumatra, Indonesia.

As reported today from Indonesia, the Japan Bank for International Cooperation (JBIC) and three of the megabanks in Japan will provide a $440 million loan for the 80 MW Muara Laboh geothermal power project in South Solok in West Sumatra.

The project is being developed by Japanese Sumitomo Corp together with Indonesian Supreme Energy and Engie (formerly GDF Suez) from France. The overall investment cost for the project is estimated at $610 million, with Sumitomo’s share in the project of 35%

Beside JBIC, Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corp., will offer a syndicated loan with the Asian Development Bank. The total loan amount is $440 million of which the part of JBIC is about $200 million. The loans will be insured by Nippon Export and Investment Insurance, as reported by Asia Nikkei.

The work on the project is to start in March 2017 with a targeted start of commercial operations in 2019. The main components of the plant will be supplied by Fuji Electric.

The sum will total around $440 million, of which JBIC will cover roughly $200 million. Nippon Export and Investment Insurance will insure loans provided by the megabanks.

Beside the Muara Laboh project, French Engie is also developing the Rantau Dedap, and Rajabasa project in Indonesia.

Source: Asia Nikkei