Financial close for PLTU Jawa-7 project completed sooner than target

Financial close for the 2x1,000 MW PLTU Jawa-7 coal-fired power plant project was completed on September 29 of this year, six days earlier than the deadline as set under the power purchase agreement signed by the developer with state-owned power firm PT PLN.

PLN Senior Public Relations Manager Agung Murdifi said in a statement on Sunday that this is the first time that an independent power producer managed to reach financial close sooner than target, revealing the developer?s solid financial capacity in developing the production.

Construction of theUS$1.8 billion power plant project, located in Serang, Banten Province, started in April, prior to the financial close, and is expected to be completed in 2019/2020, PLN said.

The project is being developed by PT Shenhua Guoha Pembangkitan Jawa Bali, a joint venture firm 70 percent owned by China Shenhua Energy Company Ltd and PT PJB Investasi, a subsidiary of PT Pembangkitan Jawa Bali (PJB), which is a subsidiary of PLN.

PLN said that the power plant will use the ultra super critical boiler technology, requiring low rank coal with CV of 4,000-6,000 kcal/kg GAR.

Editing by Reiner Simanjuntak