Sintesa obtains loans to finance expansion of Gunung Megang power plant

By Firmansyah Sembiring

Power company PT Meppogen, which is part of the Sintesa Group, obtained loans worth a combined US$145 million to help finance the expansion of its 110 MW PLTGU Gunung Megang combined-cycle power plant in South Sumatra.

Meppogen signed the syndicated loan agreement on Wednesday with lenders including PT Bank CIMB Niaga Tbk, PT Sarana MuIti Infrastruktur (Persero) and PT Indonesia Infrastructure Finance.

Sintesa Group CEO Shinta Wijaya Kamdani said that the capacity of the PLTGU Gunung Megang will be expanded to 150 MW.

She said that an amendment to the power purchase agreement with state-owned electricity firm PT PLN is expected in January of next year. The expansion project is expected to be complete at the end of 2018 or early 2019, she added.

Editing by Reiner Simanjuntak