PLN secures loan for PLTU Lontar?s Unit 4

State owned electricity firm PT Perusahaan Listrik Negara (PLN has secured a banking loan to finance the development of another power unit at PLTU Lontar coal fired power plant in Lontar village, Kemiri district, Tangerang regency, Banten province.

The firm is now ready to build the four unit of PLTU Lontar, the firm said in a statement on Tuesday.

Japan Bank International Corporation (JBIC) has agreed to provide around US$2014.55 million and 16.35 billion yen in direct lending for PLN to develop the PLTU Lontar?s Unit 4 with a capacity of 315 MW. The loan from JBIC will be coupled with funds amounting to Rp 1.4 trillion sourced from PLN?s budget, the firm said.

?The loan from JBIC is directly provided to PLN without government guarantee. For the first time PLN receives financing through such scheme, meaning the creditor trust us,? PLN?s Business Director for West Java region Murtaqi Syamsudin said.

Built on a 11-ha land, the power plant is projected to be completed in 2019. The ECP contract was won by the consortium of Sumitomo Corporation, Black and Veatch International Company and PT Satyamitra Surya Perkasa. At present, PLTU Lontar already has three units each with the capacity of 315 MW, connected to the Java-Bali power grid. The new power unit is part of the 35,000 MW program.

Land clearing process has finished and the EPC contractor is now ready to start construction.

?Preparation for development has been completed. Power from Lontar Unit 4 will strengthen the Java-Bali grid and will enter the grid through the Balaraja system,? Murtaqi said.

Editing by Johannes Simbolon