A US$280 million loan facility has given the International Finance Corporation a minority equity stake in energy producer Bajradaya Sentranusa (BDSN), supporting the operation of the 180-MW Asahan 1 hydropower project in Indonesia.
The deal is intended to improve BDSN's financial sustainability while reducing the country's reliance on fossil fuels, with $75 million of the loan coming from IFC and $205 million in syndicated and parallel loans from Indonesia Infrastructure Finance, the Korean Development Bank, Maybank International, Societe General and Sumitomo Mitsui Banking.
"With this strategic and financial support from IFC and other lenders, we look forward to providing more affordable and environmentally-friendly hydropower energy to meet our country's growing electricity needs," BDSN president director Adek Julianwar said.
The company said close to 60% of the country's power was generated from coal and oil sources in 2012, with more than 65 million people lacking access to electricity, making Asahan 1 an important part of Indonesia's energy mix.
"We are committed to supporting companies like BDSN and providing low-cost renewable energy that will improve the stability of Indonesia's electricity supply, IFC representative Sarvesh Suri said. "Affordable hydropower will helhttp://author5.pennwell.net/cf#/content/hydro/en/articles/2014/10/ifc-gains-equity-stake-in-indonesia-s-180-mw-asahan-1-hydropower-project.htmlp Indonesia meet its growing demand for reliable power to support development."
HydroWorld.com reported in April that IFC had agreed to provide $6 billion in financing for the development of hydroelectric power projects in Nepal.
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