Norton Rose Fulbright has acted for a consortium of PT Medco Power Indonesia and Ratchaburi Electricity Generating Holding Public Co, Ltd on the Riau 275 MW gas-fired power plant on the east coast of Sumatra.
The consortium won a competitive tender in late 2016 and signed the Power Purchase Agreement with PLN on April 7 this year. The Riau plant will supply electricity to Indonesian state utility PLN as the off-taker under a Build, Own, Operate, Transfer (BOOT) arrangement.
A key feature of this project is that gas supply and transportation is the responsibility of PLN. This required negotiation of risk-sharing arrangements acceptable to all parties, including the lenders, while the consortium takes responsibility for building and operating a 40-kilometre pipeline between the power plant and the pipeline owned by PLN’s gas transporter.
Indonesian associate office TNB & Partners* and a Singapore-based team from Norton Rose Fulbright advised the consortium on the US$350m deal.
TNB & Partners partner Benny Bernarto led the deal and commented:
“It is pleasing to advise on one of the very first Power Purchase Agreements signed in 2017. We look forward to supporting the project as it progresses through the financing phase and ultimately contributing generation to meet the increasing demand for electricity supply.”
The TNB & Partners team also included partner Nadia Soraya and associates Ibnu Hasan and Valiska Nathania and was supported by Norton Rose Fulbright Singapore based team: of counsel Laurie Pearson and global head of infrastructure, mining and commodities, Nick Merritt.
*TNB & Partners works in association with Norton Rose Fulbright Australia
For further information please contact:
Alex Boxsell, Senior Brand & External Communications Manager, Norton Rose Fulbright in Australia
Tel: +61 (0)2 9330 8165 Mob: +61 (0)414 985 556
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