Pontianak Power Plant

active

PT Equator Manuggal Power (EMP), a wholly-owned subsidiary of private company PT Truba Alam Manunggal Engineering Tbk, was to develop the 60 MW (2 x 30 MW units), coal-fired Pontianak Power Plant on a build, own and operate basis near Pontianak in West Kalimantan province. PT EMP was to sell electricity generated by the plant to state-owned electricity utility, PT Perusahaan Listrik Negara (PLN), under a 25-year power purchase agreement (PPA) signed in March 2007. The coal-fired power plant was intended to address an electricity shortage in West Kalimantan province, especially in Pontianak. On March 25, 2008, Bank Bukopin together with four regional development banks - Bank Jatim, Bank DKI, BPD Kaltim, and BPD Kalbar -arranged a syndicated loan to PT Equator Manunggal Power for the construction of the Pontianak Power Plant. Total funds from the bank syndication were US$37.6 million (365 billion Indonesian Rupiah [IDR]), out of the US$56.2 million (IDR 545 billion) total project cost. Bank Bukopin, as mandated lead arranger of the syndicate, funded US$13.9 million (IDR 135 billion), while Bank Jatim funded US$ 10.3 million (IDR 100 billion), Bank DKI US$7.7 million (IDR 75 billion), BPD Kaltim US$4.6 million (IDR 45 billion), and BPD Kalbar US$1 million (IDR 10 billion). The ground-breaking of the project occurred in November 2007 and the plant was expected to commence commercial operations in mid-2010.