Thai power firm signs supply deal
Ratchaburi Electricity Generating Holding PCL today announced that PT Medco Ratch Power Riau (MRPR), its joint company with a 49 per cent stake, successfully entered into a 20-year-term loan of US$222-million (Bt7.1 billion) syndicated loan agreement with four leading financial institutions.
The four leading financial institutions are Asian Development Bank, International Finance Corporation, MUFG Bank and Sumitomo Mitsui Banking Corporation Bank. Signed on March 20, the agreement has secured the construction of 275-MW Riau combined-cycle power plant with completion scheduled on May, 2021.
Kijja Sripatthangkura, RATCH CEO, said the agreement marks a significant milestone for development of Riau power project co-driven by RATCH and PT Medco Power Indonesia, a well-recognised international power company, since 2017.
The power plant construction expects to commence after MRPR submits the signed document to PT Perusahaan Listrik Negara, the electricity buyer. This success demonstrates RATCH’s commitment in fostering a partnership with MPI and long-term investment in Indonesia where its economy and power demand continue growing potentially, Kijja said.
“Aside from assuring the Riau combined-cycle power plant’s completion and steady operation for 20 years, the project reflects the international financial institutions’ support and confidence in the project and also highlights positive track record of RATCH and MPI as the project’s sponsors. On behalf of the project owners, RATCH truly appreciates the banks’ support and efforts of all relevant parties for this magnificent success. The fund will be spent on developing, constructing and operating the project for benefits of all, including Indonesians at large,” Kijja said.
With its scheduled commercial operation on May 2021, MRPR has entered into the 20-year Power Purchased Agreement with PLN. The US$293-million Riau Combined-Cycle Project development is progressing and now under the site preparation phase.