LBE secures funds for Banten 660 MW power project
Monday, November 25 2013 - 12:00 PM WIB
PT Lestari Banten Energi (LBE), an indirectly-owned subsidiary of Malaysian conglomerate Genting Berhad, has secured a total of US$735 million financing for the proposed 660 MW coal-fired power project in Banten.
?LBE has signed a $735 million finance documentation with a Malaysian and international syndicate of five banks consisting of Maybank, M-exim, CIMB, RHB and Citibank on May 8, 2013,? an industry source told Petromindo.Com on Monday, adding that the amount is about 75 percent of the total funds required for the project. The balance 25 percent will be funded via equity.
?LBE has issued a Notification to Proceed (NTP) today to its EPC contractor Harbin Electric International as the banks are ready to release the first drawdown of the loan,? the source added. Construction is expected to take approximately 36 months.
PLN has agreed to buy electricity from the power plant at 5.99 US cent per kWh for a 25-year period.
The project is expected to commence operation in 2017.
Editing by Johannes Simbolon