Central Java Coal-Fired IPP

Active

Prospective

Central Java Coal-Fired Power Plant is a 2000 MW super critical coal-fired power facility, which will burn locally produced sub-bituminous coal in Central Java, Indonesia. The project also includes transmission facilities which are expected to improve access to electricity to 7.5 million people. PT Bhimasena Power Indonesia (BPI) will develop the plant as a PPP on a 30-year build-own-operate-transfer (BOOT) basis. The electricity generated from the project would be sold to government of Indonesia for a period of 25 years through a power purchase agreement. PT Bhimasena Power Indonesia (BPI) is the project company for Central Java, and is owned by sponsors Adaro (34%), J-Power (34%) and Itochu (32%). Out of 30 firms that expressed interest, seven consortia were pre-qualified based on their technical and financial strength. Of these, four consortia—Marubeni (Japan), J-Power (Japan), Shenhua (China), and Guangdong Yudean (China) —submitted bids in April 2011. The winner, a consortium between J-Power, Itochu Corporation and Indonesia’s Adaro Power, was the lowest bidder for the price of electricity among those who met administrative and technical criteria. The consortium was awarded the project in June 2011. The project agreements, including the PPA and the Guarantee Agreement for the Central Java IPP project, were signed in October 2011. The project achieved financial close on 7 June 2016. JBIC will be providing around 60%, or $2 billion, of the total debt package of $3.5 billion. The lead arrangers on the remaining debt of $1.3 billion are a syndicate of Japanese and Singaporean banks: Bank of Tokyo Mitsubishi UFJ, DBS, Mizuho, Oversea-Chinese Banking Corporation and Sumitomo Mitsui Banking Corporation. Debt/Equity Ratio is 80:20. The new 2,000 MW coal-power plant is expected to commence operation by 2020. IFC provided advice to the PLN to structure and implement a PPP to find a private-sector investor through a transparent, competitive tender process in a difficult business environment. https://ijglobal.com/data/transaction/19236/central-java-coal-fired-power-plant-2000mw-ppp https://www.jbic.go.jp/en/information/press/press-2016/0603-48595 http://www.ifc.org/wps/wcm/connect/aaf1fb804a1b07068e30ffdd29332b51/SuccessStories_CentralJava.pdf?MOD=AJPERES

Energy

Indonesia

World Bank Group

Project

Commercial, Government, Power Generation (CCGT)