Milbank, Tweed, Hadley & McCloy LLP represented PT Supreme Energy Rantau Dedap (SERD) in connection with the development and financing of a geothermal facility in the Rantau Dedap geothermal working area in south Sumatra, Indonesia, with a gross capacity of 98.4 MW. SERD is a joint venture owned by French utility company ENGIE, Japan’s Marubeni Corporation and Indonesian geothermal energy producer PT Supreme Energy. SERD will own and operate the new facility and sell the electricity to Indonesia’s state-owned power utility (PLN) under a 30-year power purchase agreement.
The Rantau Dedap geothermal facility is expected to be developed in phases and to generate enough electricity to power around 130,000 homes, create jobs, and take advantage of Indonesia’s vast geothermal reserves to produce energy with lower rates of carbon dioxide emission.
Partner James Murray led a Singapore-based Milbank team, which included special counsel Melissa Lewis; of counsel Desiree Woo; and associates Martin Wong, Andrew Gibb and Jooyoung Song.
Mr. Murray said: “The success of this transaction was predicated upon our structuring a complex financing package, which included multiple ECAs and DFIs and the rollover of exploration-phase loans, while navigating numerous drilling, construction and other contractual arrangements. Our team was able to draw on our extensive prior experience advising on global energy projects and in particular a long line of geothermal projects in Indonesia. We’re pleased to be representing those engaged in developing Indonesia’s vast geothermal capacity.”
Ms. Lewis added: “By building geothermal power generation capacity, this project is expected to support Indonesia's economic development in a sustainable manner as well as contributing to climate change mitigation. Our team was delighted to have the opportunity to play a leading role in this important transaction.”
