JBIC signed a project finance*1 loan agreement with Sarulla Operations LTD (SOL), a Cayman Islands company in which ITOCHU Corporation and Kyushu Electric Power Co., Inc. as well as other investors have equity stakes, to finance the Sarulla Geothermal Power Plant Project in Indonesia. This loan is co-financed by other financial institutions, and JBIC is providing political risk guarantee for the portion co-financed by private financial institutions. In this project, SOL will build and operate the geothermal power plant, and sell electricity generated by the plant to the state-owned power utility in Indonesia. Japanese companies are taking part in this project as investors, and are also involved in the plant’s operation and maintenance using Japanese technologies. This loan is providing financial support for participation by Japanese companies in overseas infrastructure projects.
- *1Project finance is a financing scheme in which repayments are made solely from cash flows generated by the project and secured only on the project assets.