Financial close of PLTU Java-3 project expected in June: PLN
Monday, April 24 2017 - 03:38 AM WIB
Financial close of the planned PLTU Tanjung Jati A coal-fired power plant project, also known as PLTU Java-3, with capacity 2x660 MW in Cirebon, West Java is expected in June of this year, according to a senior official of state-owned electricity firm PT PLN.
?Financial close is expected in June. Certification process for the land is currently in progress,? said Nasri Sebayang, Director of Business for central Java region at PLN to Petromindo.com.
Meanwhile, PLN Procurement Director Supangkat Iwan Santoso said that the PLTU Java-3 project has obtained the Business Feasibility Guarantee Letter (or SJKU) from the Ministry of Finance. The letter has been demanded by some creditors to avoid risks resulting among others from disturbance in transmission, which may cause the power plant to be unable to operate. With the SJKU, the plant developer will be assured to continue receive payment from PLN despite such disturbance.
The PLTU Java-3 project is being developed by PT Tanjung Jati Power, a consortium comprising of YTL Power Internasional and PT Bakrie Power, with total investment estimate of Rp 29 trillion. The consortium signed the power purchase agreement with PLN on December 21, 2015. The first unit of the power plant project is targeted to be completed in 2019 and the second unit in 2020.
Editing by Reiner Simanjuntak