Release: IFC Investment Enables Power Generation in Indonesia

(Jakarta, Indonesia, August 5, 2008) ?IFC, a member of the World Bank Group, has invested in PT. Makmur Sejahtera Wisesa, a subsidiary of PT. Adaro Energy Tbk, to help build a power plant that will address energy shortages in Indonesia.

IFC provided $25 million for its own account and arranged a $96.8 million syndicated facility with five international banks?Calyon, Cordiant Capital, DBS, ING Bank, and KBC. This will help Makmur Sejahtera Wisesa build a 60-megawatt, coal-fired power plant in South Kalimantan, an underserved province where users experience severe power shortages.

Under a 13-year power purchase agreement, Makmur Sejahtera Wisesa will sell the generated electricity, which will be more reliable and cost-effective, to PT Adaro Indonesia. Excess electricity from the plant will be sold to the state electricity firm, PLN, to help stabilize the local power grid for other commercial and residential users.

The power plant is expected to be completed by 2010. The new electricity supply will save Adaro $100 million annually in foreign exchange from diesel oil imports, as well as substantially reduce the company?s operation costs.

Adam Sack, IFC Country Manager for Indonesia, said, ?IFC is pleased to help finance this project, which will address Indonesia?s power needs, one of the country?s biggest infrastructure bottlenecks.? (end of release)