Embalut Coal-Fired Steam Power Plant

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The government of Indonesia awarded PT Cahaya Fajar Kaltim (CFK) to build, operate, and owned a 50MW (2x25 MW) coal-fired power plant in Embalut, East Kalimantan. On June 2006, a power purchase agreement (PPA) was signed by CFK and PT Perusahaan Listrik Negara (PLN) for the plant to supply electricity to two of the largest cities in Kalimantan - Samarinda and Balikpapan - through PT Perusahaan Listrik Negara (PLN), a state-owned electricity company at the price of US$0.04 per kwh. The project was scheduled to finish in 2008. The cost to build the plant was estimated to be around IDR450 billion - IDR500 billion or US$49 million to US$54.6 million. The financial closure happened on December 2006 after a syndication of three local banks (PT Bank Mega Tbk, Bank Bukopin Tbk, and PT Bank Panin Tbk) disbursed IDR310 billion or US$33.8 million loan to CFK. The tenor of the loan was eight year with a rate above the commercial rate. CFK was a consortium of PT Kaltim Elektrik Power (a subsidiary company of Jawa Pos Group) and Perusahaan Daerah Kelistrikan Kaltim (a power company belongs to the Provincial Government of East Kalimantan).