Tanjung Jati B Coal-Fired Power Plant (Units 5 & 6)

active

This project entails the development of an additional 2,000 MW coal - fired power facility (units 5 & 6) adjacent to the existing Unit 1 to 4 with capacity of 2,640 MW in total, located in Central Jawa, Indonesia. The IPP project is being procured on BOT basis for 25 years and has been awarded by the state-owned Perusahaan Listrik Negara (PLN). The entity carrying out the expansion is PT Bhumi Jati, which is owned by Sumitomo Corp at 50%, with Kansai Electric Power and PT United Tractors ( Astra Group) each holding 25%. The power generated from the power plant will be sold to PT PLN (Persero) for 25 years. Financing of the plant comprises debt and equity in 80:20 proportion. Debt funding is being provided by a syndication of private banks, namely - Bank of Tokyo-Mitsubishi UFJ (nearly 9 per cent of debt), Mizuho Bank (nearly 9 per cent of debt), Mitsubishi UFJ Financial Group (6 per cent of debt), OCBC Bank (6 per cent), Sumitomo Mitsui Banking Corporation (nearly 9 per cent of debt), Sumitomo Mitsui Trust Holdings (nearly 7 per cent of debt) and Norinchukin Bank (6 per cent of total debt). Furthermore, JBIC is supporting the expansion with a loan of $1677.61 million (50 per cent of debt financing). Sponsors will contribute $838.8 million in equity towards the project split on a pro rata basis. As a result the total investment will amount to $4,194 million. Nippon Export and Investment Insurance (NEXI) is providing insurance for the part of this loan provided by private-sector financial institutions. Financial closure was achieved on March 27th 2017. The two new ultra-super critical units are expected to start operations in August 2021. https://ijglobal.com/data/transaction/34100/tanjung-jati-b-coal-fired-power-plant-units-5-and-6-ipp-2000mw