Wednesday, 19 June 2019 | 09:40 WIB

Medco Power Indonesia Secures Financing for Riau Power Plant Project

Eka Satria (left), President Director of Medco Power Indonesia

JAKARTA, NETRALNEWS.COM - PT Medco Power Indonesia (Medco Power), through its subsidiary PT Medco Ratch Power Riau (MRPR), has signed a Credit Agreement facility of US $222 million with an international consortium with a total loan term of 20 years from the Asian Development Bank (ADB), International Finance Corporation (IFC), MUFG Bank, Ltd. (MUFG), and Sumitomo Mitsui Banking Corporation (SMBC).

The total financing is 76% of the total investment value of US $293 million which is used for the construction of a 275 MW Steam Power Plant (PLTGU) project in Riau.

MRPR is a consortium of Medco Power (51%) with a Thai electricity company, Ratchaburi Electricity Generating Holding PCL (Ratch) (49%).

The construction of the project has been started since Quarter III of 2018 and currently the project progress reaches 24% with the target of meeting COD in May 2021. After operating, Medco Power through other subsidiaries will also act as O & M Contractor.

President Director of Medco Power Eka Satria, said "The signing of the Credit Agreement further demonstrates the great trust of international financial institutions over Medco Group's reputation for completing major projects in Indonesia.

"In terms of the project itself, the plant is expected to be able to increase the supply of electricity by 275 MW into the Sumatra electricity network and can help fulfill the target of increasing electrification in the Riau region," he said through a press release on Thursday (3/21/2019).

This is also in line with Medco Power's vision to become an environmentally friendly private electricity producer (IPP) company and provider of reliable Operation & Maintenance (O & M) services with a mission to build IPPs fueled by natural gas, geothermal and other renewable energy such as solar power and gas infrastructure ".