Muara Laboh Geothermal Power Plant

Active

Prospective

The project entails the development of a 80 MW Muara Laboh Geothermal Power Plant in South Solok Regency, 150 kilometers southeast of Padang in West Sumatra, Indonesia. PT Supreme Energy Muara Laboh, the project company, is owned 35% by Sumitomo, 35% by Engie’s Electrabel and 30% by Indonesian geothermal power producer Supreme Energy. The facility is estimated to generate approximately 1.73 million MWh of electricity a year, while offsetting 1.17Mt of CO2 emissions. The consortium was awarded the contract after a tender in 2010. The project will be developed and implemented under a 30-year power purchase agreement (PPA) with state utility PLN, supported by a 20-year support from the Ministry of Finance, as stipulated under a business viability guarantee letter (BVGL). The geothermal plant is being financed by 75:25 debt to equity. The sponsors are providing $148 million of equity. The $439 million debt signed on 26 January, 2017 comprises a $198 million loan from the Japanese export credit agency JBIC, $109 million of loans from the Asian Development Bank (ADB) and $132 million from Bank of Tokyo-Mitsubishi UFJ, Mizuho and SMBC. NEXI said is providing insurance for the entire commercial bank portion of the financing, which covers 100% of political risk and 90% of commercial risk. The ADB debt comprises a direct loan of $70 million bench marked to Libor, $20 million from the Leading Asia’s Private Sector Infrastructure Fund, and $19.25 million from the Clean Technology Fund. Muara Laboh is a part of the second fast-track programme launched by the government of Indonesia in 2010 to develop 10,000 MW of new generating capacity. Under this program, approximately 4,500 MW of energy is proposed to be generated from geothermal resources. The deal closed on 23rd March 2017. https://ijglobal.com/data/transaction/37541/muara-laboh-geothermal-power-plant-80mw https://ijglobal.com/articles/105528/financial-close-for-muara-laboh-geothermal http://aimglobalmagazine.com/construction-for-80-mw-muara-laboh-geothermal-plant-starts-in-west-sumatra/

Energy

World Bank Group

Project

Commercial, Power Generation (CCGT), Geothermal, Power Transmission, Government