Baker & McKenzie Advises on Landmark Rajamandala Hydroelectric Power Project

Singapore, 10 November 2014 – Baker & McKenzie has advised on the Rajamandala 1 x 46.6 MW run-of-the-river hydroelectric power plant to be constructed in Citarum Basin, Cianjur Regency, West Java, Indonesia. The project, which achieved financial close in August 2014, is the first major power project in Indonesia in recent years to successfully raise international limited recourse project financing without the Government of Indonesia providing a business viability guarantee.

The project financing structure to fund the construction and development of the project incorporated an investment guarantee to the project lenders by the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group that promotes foreign direct investment into developing countries. This signals the return of MIGA guarantees for power projects in Indonesia and is the first since the Asian Financial Crisis in 1997.

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Posted November 11, 2014 by repit in News

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