PLTU Batang signs loan agreement
Friday, June 3 2016 - 01:00 PM WIB
Japanese firm Itochu Corporation announced that PT Bhimasena Power, the owner of PLTU Batang coal fired power plant project in Central Java, executed on Friday a loan agreement worth US$3.4 billion with several banks.
The lenders are Japan Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mitsubishi UFJ Trust and Banking Corporation, Shinsei Bank, Limited, The Norinchukin Bank, DBS Bank Limited and Overseas-Chinese Banking Corporation.
Bhimasena is a consortium consisting of Itochu (32 percent), Electric Power Development Co., Ltd. (34 percent), PT Adaro Power (34 percent), a wholly owned subsidiary of IDX-listed coal mining firm PT Adaro Energy Tbk.
The consortium plans to build a 2x1000 MW power plant in Batang regency, Central Java. It has signed a 25-years Power Purchasing Agreement (PPA) with state owned electricity firm PT Perusahaan Listrik Negara (PLN) (Persero).
This project, which Itochu claims to be Asia?s largest IPP project, is the first public private partnership (PPP) project using the guarantee of the Indonesia Infrastructure Guarantee Fund (IIGF) under the control of the Ministry of Finance of Indonesia, which will be implemented as part of the Masterplan for the Acceleration and Expansion of Indonesia?s Economic Development (MP3EI).
This project is characterized by the use of subbituminous coal from Indonesia as the fuel for electric power generation and the adoption of the power generation method (1,000,000 kW x 2) using the ultra-supercritical (USC) pressure technology with little burden on the environment, which will be a model case of environmentally friendly, high-efficiency power generation*1 .
Construction work for the power plant will advance, aiming at commercial operations starting from May 2020 (first unit) and November 2020 (second unit) under the construction plan.
Editing by Johannes Simbolon