Sarulla Geothermal Project Secures Loan
News: A consortium of lenders will grant a EUR851mn (US$1.17bn) loan to support the 330MW Sarulla geothermal project in Indonesia, reports the Nikkei. The project is developed by Japan's Itochu Corp, Kyushu Electric Power and partners. The consortium of lenders includes Bank of Tokyo-Mitsubishi UFJ, the Japan Bank for International Cooperation (JBIC), Societe Generale and the Asian Development Bank. An official agreement for the loan is expected to be signed by the end of March 2014. The credit facility will be repaid using revenue from power sales, once the plant becomes operational. JBIC will also offer guarantees to the private-sector financial companies to protect against a default by Indonesian power utility Perusahaan Listrik Negara, which will purchase the plant's output. The plant will be owned by Sarulla Operations, in which Kyushu and Itochu will each own a 25% stake. The remaining stake will be held by Medco Power Indonesia and US firm Ormat Technologies.