PLN signs loan deal with JBIC for PLTGU Priok power plant project

State-owned electricity firm PT PLN signed on Thursday a US$310 million loan agreement with syndicated banks led by Japan Bank for International Cooperation (JBIC) for the construction of the 800 MW PLTGU Priok combined-cycle power plant project.

PLN said in a statement that the power plant project requires total investment of $437 million, of which $127 million to be funded by PLN?s equity.

The company said that other participating banks include Bank of Tokyo Mitsubishi UFJ, Mizuho and ANZ.

PLN said that the 15-year loan was not guaranteed by the government. It added that this is the second time JBIC has agreement to provide loans without government guarantee, the first of which was for the 315 MW Lontar coal-fired power plant, which is currently under construction process.

With the financial close reached on Thursday, PLN said it will pave the way for the construction of the Priok PLTGU power plant project, in the hope it could be completed in 2019.

PLN said it has appointed Mitsubishi, which partners with local firm PT Wasamitra Engineering, as EPC contractor for the power plant project. It added the company has secured the required land for the project.

Editing by Reiner Simanjuntak