Hadiputranto, Hadinoto & Partners has represented Japan’s Marubeni Corp in relation to the development of the Rantau Dedap geothermal power plant project in Indonesia’s South Sumatra. Media reports have put the estimated cost of the project at $900 million.
Marubeni, in partnership with Indonesia’s PT Supreme Energy and France’s GDF Suez SA, has set up a special purpose company named PT Supreme Energy Rantau Dedap (SERD). SERD has entered into a 30-year power purchase agreement with the Indonesian state-owned electricity utility, PT PLN (Persero), to develop the project.
Under the agreement, SERD will develop geothermal resources in the Rantau Dedap area and construct a geothermal power plant with a generating capacity of 220MW. The target commercial operation is scheduled in 2016, and the electricity generated by the project will be supplied to PLN. SERD expects to procure the main equipment for its power plant from Japanese manufacturers, and secure financing through project finance with the assistance of international commercial banks and export credit agencies such as The Japan Bank for International Cooperation (JBIC).
The HHP team was led by foreign legal consultant Luke Devine. The other firms acting on the transaction were Murdono Law Firm, which acted for PLN; ABNR and Latham & Watkins, which acted for JBIC; and Lubis Ganie Surowidjojo, which represented Indonesia’s finance ministry.
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