China Development Bank provides $700 million buyer’s credit loan for 660MW Cilacap Power Plant Phase 2 Expansion Project (Linked to Project ID#34801, #61465, #69234)
Constant 2017 USD
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Energy (Code: 230)
Export Buyer's Credit
On April 3, 2013, China Development Bank and PT Sumber Segara Primadaya (S2P) — a joint venture of PT Sumberenergi Sakti Prima (SSP) and PT Pembangkit Jawa Bali (PJB) — signed a $700 million buyer’s credit loan agreement for the 660MW Cilacap Power Plant Phase 2 Expansion Project. SSP holds a 51% ownership stake in S2P and PT Pembangkit Jawa Bali (PJB) — a subsidiary of Perusahaan Listrik Negara (PLN), an Indonesian state electricity distribution company — holds a 49% ownership stake in S2P. The loan carries an 11-year maturity and an interest rate of LIBOR (6M LIBOR in April 2013 was 0.436%) plus a 5.3% margin. The proceeds of the loan were to be used by the borrower to finance a $699.88 million EPC contract with China Chengda Engineering Co., Ltd., which was signed on June 15, 2012. The loan is not collateralized (unsecured) and the Government of Indonesia did not issue a sovereign guarantee in support of the loan. The project was implemented as an Independent Power Project (IPP) and it was financed according to a debt-to-equity ratio of 78:22. In addition to the debt financing that S2P secured from CDB, it secured a working capital loan from Bank Rakyat Indonesia (BRI). The purpose of the project was to install a third unit (with 660MW of power generation capacity) at the Jawa-8 Coal-Fired Power Plant (also known as the Cilacap Power Station). The plant is located in the villages of Karangkandri, Menganti and Slarang within Kesugihan subdistrict, Cilacap Regency, and Central Java province. Upon completion, it was expected that the third unit of the power plant would be connected to the Java-Bali power grid and serve an additional 682,000 household customers. China Chengda Engineering Co., Ltd. was the general EPC contractor responsible for implementation. However, China Energy Engineering Group Corporation (CEEC) was also involved in the project (most likely as a subcontractor). Construction began in 2013 and it was expected to last 36 months, but the project encountered significant implementation delays. The third unit of the power plant was officially inaugurated and put into operation on February 25, 2019. Bank of China also provided an additional loan for Phase 1 of the Jawa-8 (Cilacap) Power Plant Project (captured in Project ID#34801) and Bank of China and CDB each provided loans for Phase 3 of the Jawa-8 (Cilacap) Power Plant Project (captured in Project ID#46420 and ID#61465).
This project is also known as the Cilacap Expansion CFSPP 1 X 660 MW Project. The Chinese project title is CILACAP 二期1x660MW 燃煤电站项目.
Number of official sources
Number of unofficial sources
Cofinancing agencies [Type]
PT Bank Rakyat Indonesia (Persero) Tbk [State-owned Bank]
Receiving agencies [Type]
PT Sumber Segara Primadaya (S2P) [Joint Venture/Special Purpose Vehicle]
Implementing agencies [Type]
China Energy Engineering Group [State-owned Company]; Perusahaan Listrik Negara (PLN) [State-owned Company]