The Signing of the Facility Agreement for the Financing of Unit 1 of the Blawan Ijen Geothermal Project
Huge Congratulations to PT Sarana Multi Infrastruktur (Persero) and PT Medco Cahaya Geothermal (including its sponsors Ormat Technologies, Inc. and Medco Power Indonesia) for the signing of the Facility Agreement for the Financing of Unit 1 of the Blawan Ijen Geothermal Project (“Project”), and to USAID SINAR (together with Tetra Tech as the implementing partner of USAID SINAR) who have supported the successful signing of the financing agreement for the Project.
Led by our power and project finance partner (Kirana Sastrawijaya) and our financing partner (Putu Raditya Nugraha), we are honoured to be able to assist PT SMI to close this financing which will further highlight the commitment of PT SMI to support financing and development of renewable energy development in Indonesia, in particular development of geothermal projects in Indonesia.
The Unit 1 of the Blawan Ijen Geothermal Project will be the first geothermal project in East Java, where the Unit 1 of the Blawan Ijen Geothermal Project is planned to reach commercial operation date by 2024.
We are pleased to be able be contribute to this transaction – which is one of the first financing of geothermal projects in Indonesia by Indonesian lender – that also marks the interest and readiness of Indonesian lender to finance development of geothermal projects in Indonesia to support Indonesia’s commitment to achieve net zero emissions by 2060 and the acceleration of the energy transition from fossil fuels to renewable energy.