S. Korea's Eximbank extends US$131M loan to Indonesian plant project

SEOUL, Jan. 3 (Yonhap) -- The state-run Export-Import Bank of Korea (Eximbank) said Tuesday it has signed a deal to provide a US$131 million loan to an Indonesian hydroelectric power plant project as part of its drive to step up green growth financing. Under the agreement, Eximbank will be the sole project financing (PF) loan provider for the $174-million project to build a 45 megawatt hydroelectric power plant in Wampu, Indonesia, the policy lender said in a press release. Two South Korean firms, POSCO Engineering Co. and Korea Midland Power Co., will take part in the construction, which is set to be completed in July 2014. Upon completion, the two companies are slated to run the plant along with Indonesian private-sector power provider PT Mega Power Mandiri for 30 years, according to Eximbank. The project is expected to help the firms secure 230,000 tons of certified emission reduction annually, it added. Eximbank has been stepping up efforts to support local firms doing business in the so-called "green growth" sector, such as renewable energy. (END)