Cirebon Electric expected to achieve financial closing in May 2016

By Cepi Setiadi

Independent power producer PT Cirebon Electric Power (PT CEP) targets to achieve financial closing for its 1x1000 MW coal fired power plant project in Cirebon West Java in May 2016.

President Director Heru Dewanto told Petromindo.com on Wednesday that the project needs US$2 billion in financing, which is expected to be sourced from Japan Bank International Corporation (JBIC) and Korean Exim Bank.

"These two banks are expected to cover about 75 to 80 percent of the financing,? he said.

?Normally, financial closing is achieved one year after the issuance of Letter of Business Viability Guarantee (Surat Jaminan Kelayakan Usaha or SKJU) from the Ministry of Finance. However, we expect to achieve the financial closing about six month after obtaining the SKJU. And we have already got the SKJU," he added.

According to Heru, the PPA for the project was signed on Oct. 23, 2015 with the price determined based on Minister of Energy and Mineral Resources Regulation No. 3 of 2015.

Editing by Johannes Simbolon