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Medco Power Indonesia bags $222 mln loan from ADB, IFC, MUFG, Sumitomo

Sarulla Geothermal Power Plant (Image credit : EMR Ministry)

JAKARTA (RambuEnergy) – PT Medco Power Indonesia (Medco Power), through its subsidiary, PT Medco Ratch Power Riau has signed a loan agreement with a 20 year tenor, amounting to US$222 million with international financing lenders consortium to fund its power plant projects.

The financing lenders are consisting of Asian Development Bank (ADB), International Finance Corporation (IFC), MUFG Bank, Ltd (MUFG) and Sumitomo Mitsui Banking Corporation (SMBC).

The loan reached 76% of total project investment valued at US$ 293 million of project development of Riau 275 MW Combine Cycle Power Plant (CCPP). MRPR is a consortium of PT Medco Power (51%) and Thailand power company, Ratchaburi Electricity Generating Holding PCL (Ratch) (49%).

Project construction has started since Q3 2018 with the total project progress 24% to date, and target of COD in May 2021. After COD, Medco Power through its other subsidiary will take its role as O&M Contractor.

“The signing affirms strong support and trust from International Financier for good reputation of Medco Group to complete large project in Indonesia. In addition to that, the power plant is expected to increase the electricity supply by 275 MW to Sumatera power grid and can support in fulfilling the target of electrification improvement in Riau region,” Eka Satria, President Director of Medco Power said.

“This is also in line with Medco Power’s vision to become the clean Independent Power Producer (IPP) and reliable Operation & Maintenance (O&M) services company of choice with a mission to develop and operate IPP in natural gas, geothermal and other renewable and gas infrastructure facilities,” Eka Satria said.

Established in 2004, Medco Power is an independent power producer under MedcoEnergi group. MPI Currently owns and operates a gross capacity of 645 MW (IPP) and operates third-party power plants (O&M) with total capacity of 2,489 MW.

Currently, Medco Power Indonesia has some assets under development in its portfolio asset including Riau CCPP (275 MW) and Ijen geothermal (110 MW) and Solar PV (2 x 20 MW). Going forward, Medco Power will continue to prioritize development in the clean and renewable energy sectors. (*)

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