Financial close of PLTGU Jawa 1 power plant project targeted in September 2018
Tuesday, October 17 2017 - 12:41 AM WIB
Petromindo|Dasir
State-owned oil and gas company PT Pertamina targeted financial close of the 1,760 MW PLTGU Jawa 1 combined-cycle power plant project to be reached in September 2018.
?Regarding funding, we?re still in intensive discussions with the lenders. In accordance with the contract (power purchase agreement), the financial close is targeted in September 2018, but we?ll try to accelerate it to June,? said Ginanjar, President Director of Pertamina Power Indonesia, to Petromindo.com on Monday.
State-owned electricity firm PT PLN previously said that the financial close was expected in the first quarter of 2018, but Ginanjar said that as a number of timelines have been delayed, it would not be possible to meet the PLN target.
?In March of next year, we can start the land acquisition (process), and a number of small works,? Ginanjar said.
He said that the PLTGU Jawa 1 project will be 75 percent financed by lenders including Asian Development Bank (ADB), Japan Bank for International Corporation (JIBC), and Nippon Export of Investment (NEXI). JBIC will lead the consortium of lenders.
Pertamina owns 40 percent of the project, Marubeni Corp another 40 percent, and the remainder 20 percent is held by Sojitz Corp. The consortium signed the power purchase agreement (PPA) with PLN earlier this year. The power plant is targeted to start operation in 2020.
Editing by Reiner Simanjuntak