Sumsel 1

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The project entails the design, financing, construction and operation of a coal - fired power plant and 275 kilovolt power transmission line in Muara Enim, South Sumatra. The facility will have a total capacity of 2 x 300 MW (net). PT Shenhua Guohua Lion Power Indonesia is the project company leading the development on behalf of the sponsors - PT Lion Power Energy (25%) and China Shenhua Energy (75%). Project is being implemented under a build-own-operate (BOO) model. Under the "One Belt One Road" initiative, the key project will use the local high-moisture lignite of Indonesia and will be the first TPP project that will use this kind of coal in Indonesia. BOO projects in Indonesia benefit from a long- term PPA with PLN. Total project cost is estimated at $750 million and is funded through debt and equity in 70:30 ratio. Financing comprises $520 million 15-year term loan and $8.6 million 2-month letter of credit facility. MLA and facility agent is China Construction Bank (Asia). Lenders are Bank of China, China Construction Bank and PT Bank ICBC Indonesia. The remaining cost will be covered by sponsors' equity contributions. Construction works were expected to have initiated in H2 2017. Sourced from WB libraries and FACTIVA Lion Energy to be added to sponsors list - http://lionenergy.com.au/about/company-overview/