The Sarulla geothermal power project was a rare geothermal
project where multiple units were financed as a single package.
It has also sparked renewed interest in Indonesian geothermal
The $1.17 billion debt financing for Sarulla’s
three units closed on May 23 after 24 years of work. Although
40% of the world’s geothermal reserves, it was
the first new geothermal project to be financed in Indonesia
since Wayang Windu in 1997.
The geothermal power project, which will produce up to 330
megawatts of energy, is reportedly the
largest ever. Deal counsel predicted Sarulla’s
closing will encourage sponsors and lenders to contemplate new
Financing the three Sarulla units together presented some
novel challenges but inspired some truly innovative solutions,
said Joseph Bevash of Latham & Watkins. "Sarulla sets an
important new precedent that will benefit geothermal power
development in Indonesia," he added.
Financing resources risk