Asian Development Bank Signs $109 Mln Fund for Indonesia Geothermal Power Project

Manila, The Asian Development Bank (ADB) has signed a financing package worth $109 million for the Muara Laboh geothermal power generation project in western Indonesia.

Approved in December, the move is part of ADB’s efforts to “scale up private sector-led infrastructure development in Asia and the Pacific and boost support for clean energy,” the bank said in a press release.

The project will be one of the first transactions to receive funding from ADB’s newly established Leading Asia’s Private Infrastructure Fund (LEAP). The Fund is capitalized by $1.5 billion in equity from Japan International Cooperation Agency (JICA) and is managed by ADB’s Private Sector Operations Department. With the Muara Laboh approval and other recent LEAP financings, over $200 million of LEAP funds have been allocated.

On completion, the Muara Laboh geothermal facilities, located in West Sumatra, will generate 80 megawatts of electricity. Indonesia contains about 40 percent of the world’s geothermal reserves, making it an important resource for the country to achieve its commitments to reduce carbon dioxide emissions by 29 percent by 2030.

Source: Qatar News Agency