PT Geo Dipa completes financing for geothermal projects with government guarantees
With the signing of the loan agreement and of a government loan guarantee, PT Geo Dipa Energi has effectively closed the funding for its Dieng Unit 2 and Patuha Unit 2 geothermal expansion projects with the Asian Development Bank and PT Penjamin Infrastruktur Indonesia (PT PII).
PT Geo Dipa Energi (Persero), one of the Special Mission Vehicles (SMV) under the Ministry of Finance (Kemenkeu), has successfully completed financing efforts for the construction of the Dieng Geothermal Power Plant (PLTP) Unit 2 and PLTP Patuha Unit 2 with a capacity of 55 MW each, as reported this morning from Jakarta, Indonesia.
This effort has the full support of the Ministry of Finance and PT Penjaminan Infrastruktur Indonesia (Persero) or PT PII, which is also the Ministry of Finance’s SMV, which is mandated to provide government guarantee facilities for the development of the power plant project.
PT PII and GeoDipa signed an agreement with the Asian Development Bank (ADB) for the Dieng Unit 2 Geothermal Power Plant (PLTP) Development Project and the Patuha Unit 2 PLTP today (August 19, 2020), as part of efforts to provide electricity through utilization of geothermal energy.
The signing of the project includes the signing of a loan agreement between GeoDipa and ADB, the signing of the Guarantee Agreement between the Ministry of Finance and ADB, and the signing of the Guarantee Implementation Agreement between PT PII and GeoDipa.
The Dieng-2 Geothermal Power Plant (PLTP) Development Project and the Patuha-2 PLTP are projects financed by ADB and the Clean Technology Fund / CTF (channeling through ADB) to GeoDipa. These funds will be used to build unit 2 geothermal power plant projects in the Dieng and Patuha areas respectively.
The project with an investment requirement of US $ 469.2 million is included in the 2019-2028 Electricity Supply Business Plan (RUPTL) and aims to develop new renewable energy-based power plants, namely through geothermal energy.
Furthermore, the existence of this Geothermal energy generation project can support the achievement of the renewable energy mix target of 23% in 2025 according to the National Energy General Plan (RUEN), reduce carbon emissions, and contribute to Government programs related to providing electricity to the community.
Previously on March 6, 2020, based on the results of a joint evaluation between the Ministry of Finance and PT PII, the Ministry of Finance issued a Decree of the Minister of Finance (KMK) regarding the assignment to PT PII to provide guarantees against the risk of default from GeoDipa which received direct loans from ADB to finance development projects. PLTP Dieng-2 and PLTP Patuha-2, as well as Principle Approval Letter to GeoDipa.
The government, in this case the Ministry of Finance, has provided support for the development of renewable energy sources of electricity, which is realized, among others, by the existence of Ministry / Institution budget posts for the development of EBT-based power plant infrastructure, as well as fiscal tools facilities, namely government guarantee through PT PII.
Source: Kontan
