Adaro expects financial closing soon for Batang power plant project
Wednesday, November 11 2015 - 12:59 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk said that financial closing for two power plant projects including the PLTU Batang 2x1,000 MW coal-fired power plant in Batang, Central Java, and a smaller 2x100 MW coal-fired power plant in South Kalimantan are expected to be made by the end of this year.
Adaro Director M. Syah Indra Aman said Tuesday that land acquisition for the Batang power plant project has been completed, which makes him optimistic that the financial closing for the project could be reached soon.
The US$4 billion Batang power plant project is expected to be 80 percent financed via loans from JBIC and other lenders totaling around $3.2 billion. The project is developed by PT Bhimasena Power Indonesia, a consortium comprising of Adaro (34%), J-Power (34%), and Itochu (32%).
If financial closing could be made this year, the project hopefully could be completed in 2018, Indra Aman said.
He also said that Adaro hopes financial closing for the South Kalimantan power plant project could also be reached by the end of this year so that construction can start next year.
Adaro is teaming up with Korea EWP in the project through PT Tanjung Power Indonesia. Indra Aman said that the project would be financed by loans amounting $400 million.
Editing by Reiner Simanjuntak