The Asian Development Bank (ADB) has provided $109M in financing for the Muara Laboh geothermal power generation project in western Indonesia.
The project will be financed by ADB’s newly established Leading Asia’s Private Infrastructure Fund (LEAP). The fund is capitalised by equity of $1.5bn from Japan International Cooperation Agency (JICA), and managed by ADB's private sector operations department.
The assistance will be provided by a $70M loan from ADB's own capital along with $19M participation from the Clean Technology Fund (CTF). The project will also secure funding from the Japan Bank for International Cooperation as well as several commercial banks under a guarantee from Nippon Export and Investment Insurance.
The 80MW project will be delivered by PT Supreme Energy Muara Laboh, which is a joint venture of Indonesian geothermal power developer PT Supreme Energy, Japanese trading and investment firm Sumitomo, and energy firm ENGIE.
Yuichiro Yoi, senior investment specialist at ADB’s private sector operations department, said: “This project demonstrates Indonesia’s commitment to meet increasing demand for electricity and support the development of renewable energy.
“This transaction proves that the private sector will play a critical role in helping the country achieve both of these targets.”
* Data provided by Timetric's Construction Intelligence Center.