Adaro: Financial closing of Tanjung Power project expected in September

By Thomas Sembiring & Brigida Ernestina Elu Wea

IDX-listed coal mining firm PT Adaro Energy Tbk said that financial closing for its 2x100 MW coal-fired power plant in South Kalimantan is now expected in September of this year.

David Tendian, Finance Director of Adaro, said that the financial closing was slightly delayed from previous schedule of July due to the recent cabinet reshuffle as the company has to explain to the newly-appointed Minister of Energy and Mineral Resources Arcandra Tahar about the project.

David said that the company hopes to obtain about US$400 million loans from banks, or about 80 percent of the funding requirement for the project.

He said that several banks have expressed interest to provide the required loans including SMBC, BTMU, Mizuho, DBS and Korea Development Bank.

The power plant project will be developed by PT Tanjung Power Indonesia, in which Adaro through subsidiary PT Adaro Power owns a 65 percent stake, while PT EWP Indonesia, a subsidiary of Korea East-West Power Co., Ltd, holds the remaining 35 percent.

Editing by Reiner Simanjuntak