The funding will be used to develop and build the 330MW Sarulla geothermal project in Tapanuli Utara of North Sumatra in the country.
Subject to fulfillment of certain conditions, closing of finance is planned for completion in the second quarter of 2014, while consortium intends to begin the construction activities with the first phase to be operational in 2016, once the financing process completes.
Consortium plans to put the remaining two phases in commercial operation within 18 months, after commissioning of the first phase.
Ormat, which holds a 12.75% equity stake in the Sarulla project through its subsidiary Ormat International, will provide energy converters to the project, under the $254m supply contract.
The project will be supported by a 30-year energy sales contract with national electricity utility company Perusahaan Listrik Negara, a 30-year joint operating contract with Pertamina Geothermal Energy and a 20-year guarantee from the Ministry of Finance.
Ormat Technologies CEO Dita Bronicki said the company has achieved significant milestone as scheduled and look forward to continue execution on this exciting new development.
"We will continue the effort to close this financing and ultimately, supply clean, reliable electricity to the Indonesian market," Bronicki added.
