Gov’t Allows Medco Consortium to Collateralize Sarulla, M-I Swaco Brazil
Release Date: 2012-01-25
JAKARTA (IFT) - The government will allow the consortium of PT Medco Power, an affiliate of PT Medco Energi International Tbk (MEDC), incorporated in PT Sarulla Operational Limited, to collateralize the Sarulla Geothermal Power Plant project.
The project is a 3x110 MW plant located in North Tapanuli, North Sumatra and is being developed through the project financing scheme.
Fazil E Alfitri, President Director of Medco Power, said the authorization will be given through a joint decree of three ministers, the Minister of Energy and Mineral Resources, the Minister of Finance and the Minister of State-Owned Enterprises.
“The power plant can be set as collateral for a period that is equivalent to the loan tenor, plus two years,” Fazil said.
“After the joint decree is signed, we will directly sign the power and purchase deal with PLN,” Fazil said.
PLN and the Sarulla Operational Ltd consortium agreed the deal will extend for 30 years and the price will be US$ 0.0679 per kilowatt hour. PLN targets the deal to be signed this early February.
After the power and purchase deal is signed with Sarulla consortium, PLN will sign another 30-year power and purchase deal with PT Supreme Energy.
Potential Revenue
From the 30-year deal, IFT Research Department estimates the Sarulla consortium to generate US$ 4.12 billion.
The Sarulla Operational Limited was established by Medco to develop the US$ 1.4 billion geothermal power plant. The other shareholders are Ormat Technologies from the US, and Kyuden International and Itochu Corp, from Japan.
The consortium has a loan totaling US$ 900 million from Japan Bank for International Cooperation and the Asian Development Bank, and several private companies.
| Type: | NORMAL |
| Company: | M-I Swaco Brazil |
| Country: | 巴西 |
| Url: | http://en.indonesiafinancetoday.com/read/16234/Govt-Allows-Medco-Consortium-to-Collateralize-Sarulla |