Seminar ECADIN “Green Project Financing in Solar and Hydro Power”
We are honoured to have our Head of Projects and Infrastructure Practice Group, Kirana Sastrawijaya, to speak in a seminar titled Green Project Financing in Solar and Hydro Power which was recently held by Energy Academy Indonesia (ECADIN), which was attended by indonesian lenders, among other things, representatives from PT Bank Mandiri (Persero) Tbk., PT Bank Central Asia Tbk (BCA), and other major Indonesian commercial banks.
In this seminar, Kirana discussed in key consideration for lenders in a project financing of power project in Indonesia, among other things: (i) relevant provisions in a power purchase agreement that lenders will need to take into consideration for project financing; (ii) how lenders’ perspective may differ for financing a power project through a project financing vs. corporate financing, (iii) project-finance documentation for financing of a power project, (iv) cash waterfall mechanism under the cash and account management agreement for power project, and (v) provisions under the PPA that will need to be aligned with the finance documents (e.g., force majeure events, non-remediable events, termination events, etc). The discussion also highlighted local market practices and precedents for power project financing by Indonesian lenders vs. international lenders.
We really enjoyed the discussion and the excitement of the participants during the seminar. Thank you ECADIN for having us and we hope we can continue to contribute to the development of power and renewable projects in Indonesia!
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