UT hopes to complete financial close of Tanjung Jati B expansion next year
Saturday, November 5 2016 - 02:32 AM WIB
IDX-listed heavy equipment and coal mining firm PT United Tractors Tbk (UT) hopes financial close of the coal-fired Tanjung Jati B power plant expansion project in Central Java with combined capacity of 2,000 MW to be reached early next year at the latest, to pave the way for the start of construction process.
?We hope early next year to start,? said Iwan Hadianto, Finance Director of UT on Friday.
He added the project, which will see the development of unit 5 and 6 of the Tanjung Jati B power plant, is expected to be completed in 2019 or early 2020.
He said that about 80 percent of financing for the US$4 billion power plant project will come from bank loans, while the remainder from equity.
UT is a member of a consortium that includes Sumitomo Corporation and Kansai Electric Power Co assigned to develop the Tanjung Jati B power plant expansion project. The consortium in December of last year signed the power purchase agreement (PPA) with state-owned electricity firm PLN for the expansion project. UT holds a 25 percent interest in the project, Sumitomo 50 percent, and Kansai 25 percent.
The Tanjung Jati B power plant currently has a combined installed capacity of 2,640 MW.
Editing by Reiner Simanjuntak