KUALA LUMPUR, July 9 (Bernama) -- Export-Import Bank of Malaysia Bhd (EXIM Bank) today signed a US$11.9 million facility agreement with PT Great Colour Energy for the development and construction of a mini hydropower plant in Indonesia.
Through the agreement, EXIM Bank will part-finance the development of the project in Sungai Bungin, Kabupaten Enrekang in South Sulawesi, with an initial capacity of 5 mega watts.
"The US$11.9 million, which is the 12-year term loan under EXIMâ€™s Overseas Project Financing-i, covers up to 75 per cent of the project cost with total development costs of US$15 million," said the company in a statement.
Upon completion of the project, PT Great Colour Energy, a unit of Malaysian-owned Great Colour Group, will embark on the second phase of the project with an additional 5 MW.
The agreement was signed by EXIM Bank Malaysia managing director/chief executive officer Datuk Adissadikin Ali and PT Great Colour Energy president director Khairul Nizam Tajul Hasnan.
The project will contribute to the economic development and domestic capacities by providing sufficient and affordable energy in South Sulawesi. "This project is part of our responsible financing scheme to help reduce the carbon footprint of the world and EXIM Bank is very proud to be a part of this project," said Khairul.
In May, the bank signed a similar agreement for a hydropower plant, also in Indonesia.