Finnvera to participate in financing Wärtsilä's power plant projects in Indonesia
Finnvera is providing export credit guarantees for buyer credits financing Wärtsilä power plants for Indonesia.
The guaranteed credits total EUR 160 million and have a loan period of 12 years. The beneficiary of the guarantees will be Standard Chartered Bank. Finnish Export Credit Ltd, a Finnvera subsidiary, is funding the credits provided by the bank for PT Perusahaan Listrik Negara (Persero) (PLN), the Indonesian government-owned electricity company.
– In the export of capital goods the competition between equipment suppliers is very tough. In addition to Wärtsilä, a total of 30 other companies competed for the Arun power plant project and five of the offers, nearly all of which came from Wärtsilä's main competitors, reached the final round. Long-term export credit financing was an absolute requirement of PLN, which means that without the participation of Finnvera, Wärtsilä could not even have submitted a tender. PLN made an overall assessment of the buyer credit and power plant tenders. According to Wärtsilä, Finnvera's ability to provide long-term export credit financing through Finnish Export Credit Ltd and its quick and clear procedures were the main factors that led the customer to select Wärtsilä's power plant engines, which will be built in Vaasa. This project is a good example of a contract in which a guarantee and export credit solution offered by Finnish actors provides a basis for long-term buyer credit at competitive prices and helps the exporter to win the contract, explains Executive Vice President Topi Vesteri who is responsible for export financing in Finnvera.
Wärtsilä will supply a total of 35 Wärtsilä 34SG gas engines for power plants to be built for PLN. The power plants will have a combined output of 339 MW and they will supply electricity for more than 150,000 households. One of the plants, the Arun power plant, will be built in Lhokseumawe in the Aceh district in northern Sumatra, while the other one will be constructed in Bangkanai in the Kalimantan region on the island of Borneo. Both areas need reliable power supply capacity, which the two plants will help to secure.
Topi Vesteri, Executive Vice President +358 29 460 2676