Sarulla still faces delays but hopeful on closing financing soon
Muara, Lake Toba, Tapanuli Utara, North Sumatra, Indonesia (source: flickr/ Max Grabert, creative commons)
Alexander Richter
15 Jan 2014
The consortium developing the Sarulla geothermal project in North Sumatra, Indonesia continues discussions on financing but hopes to close them in the first half of 2014.
In late last year, we reported that the Sarulla project in North Sumatra, Indonesia is planning a start of work on the project for the spring of this year, but it seems now the project continues to face delays.
News now report that the company is still in discussions on financing and now hopes to close financing within the first 6 months of this year. This likely means a start of construction not before the fall of this year, if they close.
But the company reports progress on resolving issues regarding ownership of the assets and the off-take agreements, which have been the main reasons for the delay in development.
The Medco-led consortium of Medco, Itochu, Kyushu, and Ormat is now in advanced discussions with investors and banks on financing of the project.
Source: ProjectFinance
