PLTA Poso

active

PT Poso Energy signed a 30-year power purchase agreement (PPA) with the state-owned electricity utility, PT PLN, in October 2007. PLTA Poso II was deveoped as a greenfield, build-own-operate (BOO) project. The 195 MW (3 X 65 MW) project was located in the village of Sulewana, near the town of Poso in Central Sulawesi province. The sponsors of the project were PT Hadji Kalla, a unit of the Kalla Group, and PT Bukaka Hydropower Engineering and Consulting Company, a unit of the Bukaka Group. The sponsors’ exact equity shares in the project were not available from public sources as of December 2008. The project reached financial closure in May 2008, with the signing of a US$134 million (1.3 trillion Indonesian rupiah [IDR]) loan facility between PT Poso Energy and a syndicate comprised of PT Bank Negara Indonesia Tbk, BRI, Bank Panin and Bank Bukopin. The eight-year loan facility comprised a IDR662.3 billion (US$68 million) local currency-denominated tranche and a US$66 million dollar-denominated tranche. As of May 2008, 30% of the project’s construction had been completed. The project was expected to commence commercial operations by the end of 2010. The project was commissioned in December 2012, although the transmission lines were not completed yet. Delays in the project were caused by "unbalanced soil conditions and concerns on the security conditions in Poso". IDR loan commitments were converted into USD using the IDR/USD annual average exchange rate for 2008 (US$1 = IDR9698.96), obtained from IMF IFS.