OPIC Signs $120m Loan Deal for UPC Wind Farm in Sulawesi

Wind turbines are helping the Philippines diversify its energy sources beyond fossil fuels and generating not only power, but jobs, revenue and interest among thousands of curious tourists. (Reuters Photo/United Wind)

By : Ratri M. Siniwi | on 1:14 PM April 08, 2016
Category : Business, Corporate News

Jakarta. The Overseas Private Investment Corporation, a US government development agency, on Thursday (07/04) announced it will finance Indonesia’s largest wind power project.

The $120 million investment will fund the development, construction, commissioning and operations of the 70-megawatt wind farm in Sulawesi. The project is to be developed by UPC Sidrap Bayu Energy, a joint venture of US renewable energy company UPC Renewables and a local firm Binatek Energi Terbarukan. 

President Joko Widodo launched the project — the largest of its kind in the country —last May, along with a 50-megawatt power plant in Bantul, Yogyakarta, also to be developed by UPC and Binatek.

“With the financing of this wind farm, we are helping Indonesia accelerate its renewable energy development, while improving the lives of local communities by providing reliable power,” Elizabeth Littlefield, OPIC’s president and chief executive, said.

OPIC’s work in Indonesia includes agriculture, micro-finance, small and median enterprise landing, with 115 projects across the country.

“UPC is proud to be able to bring a new power generation form to Indonesia at an affordable price, and hopes to continue providing low cost renewable energy for the benefit of the country and the people,” Brian Caffyn, president director of the UPC Sidrap Bayu Energy, said.

UPC Sidrap Bayu Energy's projects in Indonesia focus mostly on wind power plant farms with 1,000 MW of wind projects to constructed within the next five years, Brian said. The company is also looking for solar power opportunities in Indonesia.

OPIC has been active in Southeast Asia for 40 years, investing in various sectors including infrastructure, low-income housing, agriculture, and renewable energy and supports the investment of US capital into emerging markets around the world.

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