Muara Laboh geothermal power expansion secures USD 92M loan from ADB
Muara Laboh geothermal plant, West Sumatra, Indonesia (source: Jacobs)
Carlo Cariaga
14 Jan 2025
The expansion of the Muara Laboh geothermal field in Indonesia has secured a $92.6 million loan from the ADB, facilitating a final investment decision.
The Asian Development Bank (ADB) will be providing USD 92.6 million of financing to PT Supreme Energy Muara Laboh (SEML) for the expansion of the Muara Laboh geothermal field located in Solok Selatan Regency in West Sumatra, Indonesia. This funding will go towards the development of Muara Laboh Unit 2, which has a planned 80 MW installed capacity and is scheduled to be operational by early 2027.
The financing package has been assembled by ADB with USD 38.8 million from the bank’s ordinary capital resources, USD 38.8 million as a syndicated ADB loan from Sumitomo Mitsui Banking Corporation, and a USD 15 million soft loan from the Australian Climate Finance Partnership (ACFP).
This development comes shortly after the announcement of a PPA Amendment signed by PT SEML with power distributor PT PLN (Persero) for both the 80-MW Muara Laboh Unit 2 and the 60-MW Muara Laboh Unit 3. With this, project partner INPEX had separately announced that a final investment decision (FID) has been reached for the expansion project.
Other lenders for the project include the Japan Bank for International Cooperation (JBIC), Mizuho Bank Ltd., MUFG Bank Ltd., and The Hyakugo Bank Ltd. Loans from Japanese private institutions will be insured by Nippon Expert and Investment Insurance (NEXI).
ADB had previously supported Phase 1 of the Muara Laboh geothermal power project, as well as other Indonesian geothermal projects including Sarulla and Rantau Dedap.
“Investing in geothermal power can be challenging, so support from the ACFP and the Australian Government is critical to reducing risks and implementing projects that help Indonesia meet its clean energy targets and provide affordable electricity,” commented Jiro Tominaga, ADB Country Director for Indonesia.
Source: Kompas.com and INPEX
