Deal Maker of the Year Awards 2012 WINNER - INDONESIA

DEAL: PT Perusahaan Listrik Negara in power purchase agreement with PT Supreme Energy Muara Laboh and PT Supreme Energy Rajabasa

NAME: Dr. Mohamed Idwan (‘Kiki’) Ganie COMPANY: Lubis Ganie Surowidjojo POSITION: Managing Partner ADDRESS: Menara Imperium 30th Floor, Jl. H. R. Rasuna Said Kav. 1 Kuningan, Jakarta 12980, Indonesia

TEL: +62 21 831-5005, 831-5025 EMAIL: ganie@lgslaw.co.id WEBSITE: www.lgsonline.com

BIO:

Mohamed Idwan (‘Kiki’) Ganie is the Managing Partner of Lubis Ganie Surowidjojo (LGS). He graduated from the Faculty of Law of the University of Indonesia and holds a PhD in Law from the University of Hamburg. Dr. Ganie has more than 30 years of legal experience, and specializes in commercial transactions and commercial litigation, including alternative dispute resolution and has acted as an expert in a number court and arbitration proceedings. His expertise covers general corporate/company law, banking law, finance, bankruptcy and restructuring, mining, investment, acquisitions, infrastructure projects/project finance, antitrust, and shipping/aviation, with a particular focus on corporate governance and compliance.

LGS LAW FIRM

In the course of LGS’ more than 27 years of service, we have secured our position as the premier Indonesian corporate transaction and commercial litigation law firm. This combination of commercial law experience and litigation uniquely positions LGS to deal with the full range of commercial issues faced by our clients. We have experience representing a diverse range of clients, including domestic and multinational corporations, public and private companies, Government instrumentalities and State Owned Enterprises. We work closely with our clients to understand their problems, determine their needs, and arrive at practical solutions that are both cost-effective and viable over the long term.

LGS has obtained Lloyd’s Register Quality Assurance certifications of ISO 9001:2008 for Quality Management systems and ISO 14001:2004 for Environmental Management systems to ensure the quality of the firm’s operations.

74 www.finance-monthly.com (1) Please summarise the transaction

On 2 March 2012 the Power Purchase Agreements (PPAs) for the Muara Laboh and Rajabasa geothermal power plants have been signed between the Indonesian state-owned electricity utility company PT Perusahaan Listrik Negara (PLN) (Persero) and the two project companies. The projects will be carried out by PT Supreme Energy Muara Laboh and PT Supreme Energy Rajabasa, on behalf of PT Supreme Energy, International Power (IPR - GOF SUEZ Asia) and Sumitomo Corporation.

At the same time, the Ministry of Finance has issued Government Guarantee Letters for the two project companies pursuant to Minister of Finance Regulation No. 139/PMK.011/2011 on PLN’s Business Viability.

Muara Laboh and Rajabasa are the first two geothermal power plant projects under the Second 10,000 MW Fast Track Program, which includes 4,000 MW of geothermal power, and as such will serve as a showcase projects for future geothermal power plant projects and as precedents for how the associated government guarantee framework will operate.

Muara Laboh, located in South Solok Regency, West Sumatra Province, and Rajabasa, located in South Lampung Regency, Lampung Province, will generate 220 MW each, which will place them amongst the largest geothermal projects globally, and are expected to enter commercial operation in 2016, following production well drilling in 2012 and plant construction during 2013-2016. The projects are being developed as Independent Power Producers (IPPs).

Q Q What was your role within the transaction?

Lubis Ganie Surowidjojo (LGS) acted for the Government of the Republic of Indonesia, advising the Ministry of Finance on the issuance of guarantees.

What were the challenges or difficulties presented?

Such transactions always pose a certain

DEAL OVERVIEW: Q

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difficulty due to a large number of parties involved, both on the part of the private company consortium and the involvement of the state electricity utility as well as the Ministry of Finance.

How were the challenges or difficulties overcome?

Dealing with the coordination of all of the parties is key in such transactions is critical to the deal’s success and requires a deep understanding of the parties requirements, concerns, operations and business goals. Ensuring open channels of communication, regular meetings, concrete deadlines and deliverables was essential to coordinating all of the parties and ensuring that the project milestones were successfully reached within the planned schedule.

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What other types of clients or transactions have you been involved with?

Following the Muara Laboh and Rajabasa showcase geothermal projects, the Rantau Dedap Geothermal Power Purchase Agreement Signed on 14 November 2012. PT Supreme Energy Rantau Dedap, which is the project company of the consortium of Japan's Marubeni Corp, Indonesia’s PT Supreme Energy and France’s GDF Suez SA, signed a 30 year power purchase agreement with the Indonesian state-owned electricity utility company PT Perusahaan Listrik Negara (PLN) (Persero).

The project is located in South Sumatra, has a target commercial operation of 2016, a capacity of 220MW, and an estimated value of $900 million.

Lubis Ganie Surowidjojo once again represented the Indonesian Ministry of Finance.

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What are your thoughts and predictions or 2013 and beyond?

We expect Indonesian infrastructure development, particularly as part of the PPP framework, to increase substantially.