Adaro expects financial closing for two power projects this year

President Director of IDX-listed coal giant PT Adaro Energy Tbk, Garibaldi Tohir said that financial closing for the 2x1,000 MW Batang coal-fired power plant in Central Java is expected in June of this year.

?At the Batang project, land acquisition has been completed. We?ll follow up with financial closing, hopefully to be completed in June (2016),? Garibaldi told Kontan.

The Batang power plant project will be developed by a consortium called PT Bhimasena Power Indonesia, which is jointly owned by Adaro, and Japan?s J-Power Energy Power Development Co. Ltd. and Itochu Corp.

For years, Bhimasena had been facing difficulties in acquiring the required land for the US$4 billion project amid opposition from some villagers who demanded excessive price for the land. With the help of state-owned electricity firm PT PLN, the acquisition of the remaining land requirement could be finally completed last year.

Elsewhere, Garibaldi said that his company was also hopeful that financial closing for the 2x100 MW coal-fired power plant project worth US$550 million in South Kalimantan could be concluded sooner.

The project will be developed by Adaro?s subsidiary PT Tanjung Power Indonesia in cooperation with Korea EWP (35% stake). The company is looking to get bank financing of up to $412.5 million for the project.

Garibaldi said that the two power plant projects are expected to be completed in three to four years. (*)