Completed Commercial AidData Chinese Aid

China Eximbank contributes $122.4 million to overseas investment loan for Phase 1 of 244MW Sorik Marapi Geothermal Power Plant Construction Project (Linked to Record ID#69599)

$122.4M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	PT Sorik Marapi Geothermal Power
Country	Indonesia
Start Date	Oct 01, 2017
End Date	Jun 15, 2028
Duration	3,910 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`62261`

Grant Description

China Eximbank contributes $122.4 million to overseas investment loan for Phase 1 of 244MW Sorik Marapi Geothermal Power Plant Construction Project On December 8, 2016, Zhejiang Kaishan Compressor Co., Ltd (Kaishan) and Zhejiang Branch of China Eximbank signed a loan intention agreement for Phase 1 of 244MW Sorik Marapi Geothermal Power Plant Construction Project.

Then, in October 2017, PT Sorik Marapi Geothermal Power (SMGP) — a special purpose vehicle that is majority-owned by KS Orka — signed a $244.8 million overseas investment loan (境外投资贷款) agreement with Bank of China and China Eximbank for Phase 1 of Sorik Marapi Geothermal Power Plant Construction Project.

Bank of China contributed $122.4 million (captured via Record ID#69599) and China Eximbank contributed $122.4 million (captured via Record ID#62261). The maturity of the loan was 10-years. However, its interest rate and grace period are unknown.

This project involved the construction of a 3 x 80MW geothermal power plant in Sibanggor Julu Village, Puncak Sorik Marapi District, Mandailing Natal Regency, and North Sumatra Province. Phase 1 of the project involved the installation of 126MW power generation capacity. PowerChina was the EPC contractor responsible for implementation.

Zhejiang Kaishan Compressor Co., Ltd (Kaishan) was also involved in project implementation. On October 16, 2016, drilling operations commenced. Construction of the first phase was completed on June 6, 2018.

Unit 1 achieved its commercial operations date (COD) and supplied electricity to the PLN’s Panyabungan substation on 28 September 2019.

The electricity connection from the power plant to the main substation of PT PLN (Persero) was officially inaugurated on February 13, 2020.

Then, in January 2021, a high-pressure burst of gas from one of the geothermal wells killed five people and injured 24 other people. Nearly 20 villagers were hospitalized. The gas leak happened when employees of Kaishan were commissioning a geothermal well.

Two more gas leaks occurred in 2022 resulting in hospitalizations, and a hot mud eruption in April 2025 destroyed more than four hectares of farmland.

📋 Staff Comments

This project is also known as Phase I of the 3 x 80MW Sorik Marapi Geothermal Power Plant Project, the SMGP 240MW Geothermal Power Project Phase I Project, and the SMGP Project. The Chinese project title is SMGP地热开发项目 and 开山控股印尼地热发电项目.
KS Orka Renewables Pte Ltd (KS Orka) is a Singapore-based joint venture between Hugar Orka ehf, an Icelandic company and Zhejiang Kaishan Compressor Co., Ltd (Kaishan). KS Orka acquired a 95% ownership stake in SMGP from OTP Geothermal (a joint venture between Origin Energy and Tata Power) in August 2016.

📚 Sources & References

Sorik Marapi Geothermal Power Plant
Belt and Road
GPP Sorik Marapi 240 MW beginning test operation!
PT Sorik Marapi Geothermal Power
Drilling starts for 240 MW Sorik Marapi project
North Sumatra
Indonesia
First 45 MW of Sorik Marapi geothermal project started commercial operation
Infrastructure Projects
浙江开山压缩机股份有限公司关于控股孙公司 SMGP 公司因地热开发项目需要向银团申请贷款的公告
中国进出口银行浙江省分行领导考察印尼SMGP 240MW地热发电项目
进出口银行浙江省分行与开山股份签署信贷意向协议
浙江开山压缩机股份有限公司关于控股孙公司 SMGP 公司因地热开发项目需要向银团申请贷款的公告
Import and Export Bank of China Zhejiang Branch signs Agreement of Loan Intent with Kaishan
Global Power and Energy Finance, https://www.dealstreetasia.com/stories/36963-36963/
Short development time of Sorik Marapi geothermal project lauded
开山股份(300257)公告正文
Five Dead, 24 Receiving Intensive Treat...l Burst on Indonesia_s Sumatera Island
Kaishan Compressor Dives After Five Die in Toxic Gas Leak at Indonesian Project
GI PLN Panyabungan
N. Sumatra's Sorik Marapi Power Project Gets a New Owner
Eximbank Power Sector Projects in Asia.pdf
World Bank PPI
开山股份:关于印尼SMGP地热发电项目发生安全事故的补充公告
Sorik Marapi geothermal power plant
Hot mud eruption at Sorik Marapi, a false promise of green energy: Jatam
ESG Impacts of China’s NextGeneration Outbound Investments: Indonesia and Cambodia
Analysis of Community Socio-Economic Changes After Land Acquisition on the PT Sorik Marapi Geothermal Power Geothermal Project
Sorik Marapi Green Finance Framework May 2024 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.