Medco Power inked $1.17 billion loan for the development of Sarulla geothermal project 330MW

(April 1st 2014) -- PT Medco Power Indonesia, (MPI), a company owned by PT Medco Energi Internasional Tbk and PT Saratoga Power, as members of Sarulla Operations Ltd (?SOL?) consortium along with Japanese companies of Itochu Corporation, Kyushu Electric Power Co and American company Ormat International Inc., on March 28th 2014 has signed the US$ 1.17 billion loan agreement, with a loan tenor of 20 years and 7 months grace period for the development of Sarulla Geothermal Power Plant (?Sarulla Project?). The lenders are Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB) and a consortium of commercial banks comprises of Bank of Tokyo-Mitsubishi UFJ Ltd., ING Bank N.V., Mizuho Bank, Ltd., National Australia Bank, Soci?t? G?n?rale and Sumitomo Mitsui Banking Corporation as Mandated Lead Arrangers. Sarulla Project, which will develop a 3x110 MW capacity and is located in Tapanuli Utara Region, North Sumatra province, represents the largest single-contract geothermal project to date in the world. MPI is the majority and owns 37.25% interest in SOL through PT Medco Geopower Sarulla.

Based on the signed Energy Sales Contract dated April, 4th 2013 with PLN (National Electricity Company), Sarulla Project is targeted to achieve financial closing in April 2014. This Financial closing will accelerate the development of Sarulla Geothermal Power Plant project which is expected by the government to fulfill the electricity demand in North Sumatera and to provide a fuel oil savings by US$ 1 million per day for PLN. Moreover, the operation of Sarulla Project generate electricity without emitting a high level of CO2 to minimize environmental burden and also to generate stable electricity without being affected by the availability of its resources compared to other renewable energy resources. The first unit of Project Sarulla of 110 MW is slated for its Commercial on date (?COD?) by 2016, and then followed by the second and third unit of each 110 MW by 2017 and 2018 respectively.

Holding 40% of total global potential capacity, Indonesia is world?s largest geothermal resource country which proactively places geothermal as strategic alternative source of electricity generation. Sarulla Project is in line with MPI?s commitment to execute its business with the clean environment and renewable energy utilization basis. Fazil E Alfitri, President Director of MPI explained, ?Sarulla geothermal is a significant landmark of Medco Power to demonstrate its commitment to become a clean and environment-friendly power producer using renewable energy resources.?

Medco Power Indonesia, a company owned by PT Medco Energi Internasional and PT Saratoga Power, is engaged in power industries, striving in green, clean and renewable power generation, focusing on IPP (Independent Power Plant) and power plant services such as project management, operation and maintenance, and procurement services. MPI owns and also operates 300 MW Independent Power Plant in Batam, 30 MW in South Sumatera and 2x660 MW Operation and Maintenance of Tanjung Jati B Power Plant in Jepara. (ends)