Zhejiang puts refi on hold for Indonesian geothermal plant
Zhejiang Kaishan Compressor Co has put on hold the $360 million refinancing of its 140MW Sorik Marapi geothermal plant in Indonesia as the project has been suspended for at least three months after a toxic gas leak at the site.
The operations of unit 1 and construction of unit 2 have been stopped pending the completion of an investigation on the cause of the gas leak, which killed five people in a nearby village and some 20 villagers were reported to have been hospitalised.
The sponsor is seeking a 12-year tenor on the refi, and AIIB is expected to put up a $100 million A loan. Commercial banks that earlier committed to join AIIB under its $260 million B loan include DBS, Bank of China, BNP Paribas, Hana Bank, Natixis, Societe Generale, UOB, and possibly Hong Kong Mortgage Corp.
