In Jakarta:
Richard Aitken
Phone: +62 815 1433 9017
E-mail: RAitken@ifc.org

In Hong Kong:
Andrew Mak
Phone: +852 2509 8110
E-mail: AMak@ifc.org


Jakarta, Indonesia, August 5, 2008—IFC, a member of the World Bank Group, has invested in PT. Makmur Sejahtera Wisesa, a subsidiary of PT. Adaro Energy Tbk, to help build a power plant that will address energy shortages in Indonesia.

IFC provided $25 million for its own account and arranged a $96.8 million syndicated facility with five international banks—Calyon, Cordiant Capital, DBS, ING Bank, and KBC. This will help Makmur Sejahtera Wisesa build a 60-megawatt, coal-fired power plant in South Kalimantan, an underserved province where users experience severe power shortages.

Under a 13-year power purchase agreement, Makmur Sejahtera Wisesa will sell the generated electricity, which will be more reliable and cost-effective, to PT Adaro Indonesia.  Excess electricity from the plant will be sold to the state electricity firm, PLN, to help stabilize the local power grid for other commercial and residential users.  

The power plant is expected to be completed by 2010. The new electricity supply will save Adaro $100 million annually in foreign exchange from diesel oil imports, as well as substantially reduce the company’s operation costs.  

Adam Sack, IFC Country Manager for Indonesia, said, “IFC is pleased to help finance this project, which will address Indonesia’s power needs, one of the country’s biggest infrastructure bottlenecks.”

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.

About Makmur Sejahtera Wisesa/PT Adaro Energy
MSW is a subsidiary of PT Adaro Energy, which recently listed its shares on the Indonesia Stock Exchange in a $1.3 billion initial public offering.  Adaro Energy manages the country’s second-largest coal miner, PT Adaro Indonesia, which has a concession to mine coal in South Kalimantan until 2022.  PT Adaro Indonesia’s coal has been trademarked internationally as “Envirocoal,” because it is exceptionally clean, with ultra low sulfur, and suitable for power generation, cement manufacturing, and industrial use.