The Japan Bank for International Cooperation (JBIC) and the country's three megabanks will provide financial support for an Indonesian geothermal power plant planned by Sumitomo Corp., as Japan pushes infrastructure exports as a key growth strategy.
JBIC, together with Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corp., will offer a syndicated loan with the Asian Development Bank. The sum will total around $440 million, of which JBIC will cover roughly $200 million. Nippon Export and Investment Insurance will insure loans provided by the megabanks.
Sumitomo will break ground on the 80 MW Muara Laboh geothermal power plant in South Solok in West Sumatra, in March, and plans to begin commercial operations in 2019. Fuji Electric will supply the plant's main parts such as steam turbines and power generators. Sumitomo will handle surveying of the project area, as well as operations and maintenance after construction is completed. It is the first time that Sumitomo, a trading house, will run a geothermal power plant.