Financing close for Cirebon power plant delayed to March
Monday, January 30 2017 - 01:28 AM WIB
Petromindo|Boim
Financing close for a planned 1,000 MW coal-fired power plant project in Cirebon, West Java, is now expected to be reached in March of this year, a slight delay from the earlier target of January, Bisnis Indonesia reported on Monday.
The paper quoted Finance Director of IDX-listed integrated energy company PT Indika Energy Tbk, Azis Armand as saying that the expected loans for the project are still at the stage of ?internal process? at some banks. He did not elaborate.
PT Cirebon Energi Prasarana (CEPR) is planning to develop the power plant project, targeted to be completed in 2020. CEPR is owned by a number of firms including IDX-listed PT Indika Energy Tbk, Marubeni Corporation, Samtan Co. Ltd, Korea Midland Power Co. Ltd, and Chubu Electric Power Co. Inc.
Meanwhile, Indika Director Eddy Junaedy Danu said that although financing close has yet to be reached, construction of the power plant project has already started to help meet the completion target. In fact, the consortium has already started the process of procurement of the boiler and generator, he added.
The power plant project, which is an expansion of the existing 1x660 MW Cirebon coal-fired power plant, will be financed by creditors including JBIC, Export-Import Bank of Korea, and Nippon Export and Investment Insurance. (*)