JBIC signs loan agreement with PLN
Wednesday, March 16 2016 - 11:54 AM WIB
The Japan Bank for International Cooperation (JBIC) signed a loan agreement on March 14 in buyer's credit (export loan) totaling up to approximately 9.8 billion yen and USS107 million (JBIC portion) with PT Perusahaan Lsitrik Negara (PLN) (Persero), Indonesia?s state-owned power company..
The loans are cofinanced with Sumitomo Mitsui Banking Corporation (SMBC), bringing the total cofinancing amount to approximately 16.4 billion yen and $179 million, with Nippon Export and Investment Insurance (NEXI) providing insurance for the portion cofinanced by SMBC.
The loan is intended to provide financing for PLN to purchase a complete set of facilities for ultra-supercritical coal-fired power plant, including steam turbine and generator (Toshiba Corporation) and boiler (IHI Corporation) from Sumitomo Corporation and other entities for the expansion of the 315 MW Lontar coal-fired power plant in Banten province.
In order to respond to the country's surging electricity demand which has risen in line with continued economic growth, the Indonesian government has committed to promote its 35 GW power plants development plans for the five years from 2015 to 2019.
The Lontar coal-fired power plant is part of this power development plan. Through JBIC's support for the export of power generation equipment by Japanese companies, this loan is expected to support Indonesia's economic development by realizing steady power supply, and, at the same time, will contribute to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to financially support the export of infrastructure-related facilities as well as the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
Editing by Johannes Simbolon