Adaro?s power unit to achieve financial closing in H1 2016

By Cepi Setiadi

PT Tanjung Power Indonesia (TPI), a subsidiary of IDX-listed coal and power firm PT Adaro Energy Tbk, is targeting financial closing for its 2x100 MW coal fired power plant project in South Kalimantan in this first semester of 2016.

Adaro?s Head of Corporate Communication Adaro Energy Tbk, Febriati Nadira told Petromindo.com on Monday that currently TPI is in the process of achieving financial closing (FC) for the project.

"The FC for this project was initially targeted to be achieved in October 2015, but it has been delayed until now. Now, we expect to sign the FC in this first semester of this year," she said, without elaborating the reason behind the delay.

TPI, established in August 2013, is a consortium of PT Adaro Power (65 percent) and PT EWP Indonesia (35 percent). The latter is a subsidiary of Korea East-West Power Co., Ltd.

This power plant will use circulating fluidized bed (CFB) technology and, as fuel, will use approximately 1 million tons of coal per annum, the majority of which will be supplied by Adaro Energy. In October 2014, TPI signed the PPA for the project with public utility PT Perusahaan Listrik Negara (PLN) (Persero) for 25 years.

The investment is estimated at US$450-$550 million, most of which will be project-financed using non-recourse debt. This project is included in PLN?s fast-track program project phase 2, with a build, own, operate and transfer (BOOT) scheme guaranteed by the government in the form of a business viability guarantee letter.

Editing by Johannes Simbolon