Indonesia's oldest geothermal power plant (PLTP), the Kamojang plant in West Java (Source: https://www.thejakartapost.com/)Jakarta (VNA) – Indonesian state-owned electricity giant PLN has secured a500-million-USD “green loan” with a guarantee from the World Bank’sMultilateral Investment Guarantee Agency (MIGA) to keep seven renewable energyprojects alive amid the COVID-19 pandemic.
In its recent statement, PLN said MIGA wouldguarantee 95 percent of the loan for five years through a consortium ofinternational lenders including the US’s JPMorgan, Singapore’s Oversea-ChineseBanking Corporation (OCBC), Germany’s KfW IPEX-Bank, and Japan’s SumitomoMitsui Banking Corporation (SMBC).
According to PLN finance director Sinthya Roesly, in a period of difficultliquidity and loan markets, PLN achieved financing cost efficiency byimplementing a structure that attracts international creditors.
Meanwhile, MIGA said in its online proposal that the loan’s purpose was toprovide working capital for PLN to buy electricity from seven existing renewableenergy projects, including two hydropower plants in North Sumatra and fivegeothermal power plants.
PLN, whose power plants are nearly 40 percent coal-fired, has been working todiversify fundraising channels as international lenders close their wallets tocoal out of environmental commitments./.
VNA
