Development of Hasang Hydropower Plant as part of the Indonesian government's 'Fast Track II' programme
Baker McKenzie’s member firms in Singapore and Indonesia, Baker McKenzie Wong & Leow and HHP Law Firm have advised on the Hasang Hydropower Plant, part of the Indonesian Government's 'Fast Track II' programme. The project reached successful financial close on 31 October 2016.
The Firm advised LG International, Titan Group and PT Binsar Natorang Energi on the development and financing of the hydropower plant. The project obtained limited recourse financing backed by K-SURE and achieved financial close in accordance with the schedule set by PT PLN (Persero) under the power purchase agreement, a significant achievement in light of the extent of delays experienced generally in a variety of similar projects.
The Fast Track II programme is designed to deal with Indonesia’s power shortage problem. The Firm has also acted on other significant projects under the programme, including the Sarulla Geothermal Power Project, one of the largest single contract geothermal power project in Indonesia.
The Baker McKenzie team in Singapore was led by Martin David, Head of the Projects practice in Singapore, and supported by Principal Ang Kim Hock and Local Principal Erik Begin. In Jakarta, Luke Devine, Head of the Firm's Energy, Mining and Infrastructure in Asia Pacific led the project with Partner Mita Guritno, supported by Local Partner Kirana Sastrawijaya.
Commenting on the deal, Martin David said:
We are delighted to have advised our clients on this environmentally and socially sustainable hydropower plant.
"This project is a continuation of our successful run in being involved in the majority of recent hydropower projects in Indonesia, and reinforces our position as the market leader in the projects and infrastructure sector in Indonesia."
This project won the "Asia Pacific Hydro Deal of the Year" at this year's IJ Global Awards, which was held in Singapore on 9 March. The IJ Global Awards recognises the best energy, infrastructure and mining deals that closed in 2016 from around the world.