Indonesia:

Sarulla Geothermal Nears Signing (Project Finance Magazine)

The four sponsors of the $1.6 billion Sarulla geothermal project in Tapanuli Utara, North Sumatra, are expected to sign its financing next week. The sponsor group comprises Medco (37.25%), Itochu (25%), Kyushu (25%) and Ormat (12.75%).

The sponsors signed an energy sales contract (ESC) with state-owned electricity company PLN and a joint operating contract with Pertamina Geothermal Energy (PGE), a 100% subsidiary of state-owned oil and gas company Pertamina, on 3 April 2013. The contracts give the sponsors exactly one year to close the financing, so the four plan to sign the financing documents before closing on the debt towards the end of this month.

The Sarulla geothermal power plant, which is expected to generate three by 110 megawatts (MW) of electricity, was initiated in 1990.