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Overview

Bank of China provides $408 million loan for 600MW Cilacap Power Plant Phase 1 Construction Project (Linked to Record ID#34748, #61465, #69234)

Commitments (Constant USD, 2023)$918,014,248
Commitment Year•2003Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2003
Start (planned)
Jun 1, 2003
Start (actual)
Dec 29, 2003
End (planned)
Nov 1, 2005
End (actual)
Nov 14, 2006

Geospatial footprint

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In 2003, Bank of China and PT Sumber Segara Primadaya (S2P) — a joint venture of PT Sumberenergi Sakti Prima (SSP) and PT Pembangkit Jawa Bali (PJB) — signed a $408 million loan agreement for the 600MW Cilacap Power Plant Phase 1 Construction Project. The purpose of the project was to install two 300MW power generation units (Unit 1 and Unit 2) 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. More detailed locational information can be found at https://www.openstreetmap.org/way/92905337#map=16/-7.6849/109.0931

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • PT Sumber Segara Primadaya (S2P)

Implementing agencies

State-owned companies

  • China Chengda Engineering Co. Ltd
  • PT Perusahaan Listrik Negara (Persero) (PLN)

Loan desecription

Bank of China provides $408 million loan for 600MW Cilacap Power Plant Phase 1 Construction Project

Interest rate (t₀)•3.8%Interest type•Fixed Interest Rate

Narrative

Full Description

Project narrative

In 2003, Bank of China and PT Sumber Segara Primadaya (S2P) — a joint venture of PT Sumberenergi Sakti Prima (SSP) and PT Pembangkit Jawa Bali (PJB) — signed a $408 million loan agreement for the 600MW Cilacap Power Plant Phase 1 Construction 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 carried an interest rate of 3.8%. Its maturity and grace period are unknown. The proceeds of the loan were to be used by the borrower to finance 80% of the cost of a $510 million EPC contract with China Chengda Engineering Co., Ltd., which was signed in June 2003. The purpose of the project was to install two 300MW power generation units (Unit 1 and Unit 2) 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. China Chengda Engineering Co., Ltd. was the general EPC contractor responsible for implementation. Construction was originally expected to begin in June 2003, with the first 300MW power generation unit taking 25 months to complete and the second 300MW power generation unit taking 29 months to complete. The EPC contract officially went into effect on December 29, 2003 and construction began shortly thereafter. Unit 1 passed a 168-hour trial run operation on February 28, 2006. Unit 2 passed a 168-hour trial run operation on August 2, 2006. Unit 1 and Unit 2 were handed over to the project owner (S2P) in April 2006 and September 2006, respectively. The power plant was officially inaugurated by Indonesian President Susilo Bambang Yudhoyono and put into operation on November 14, 2006. As part of Indonesia's goal of net-zero emissions by 2050, the Cilacap power station was retired in 2023.

Staff comments

1. This project is also known as the Phase 1 of the Jawa-8 (Cilacap) Power Plant Project, the Cilacap 2x300MW-CFSPP Power Plant Project, and the 2x300MW MW Cilacap Power Plant Construction Project. The Chinese project title is 2x300MW火电厂 or 芝拉扎电站项目 or 芝拉扎2X300MW燃煤电站项目. 2. CDB provided an additional loan for Phase 2 of the Jawa-8 (Cilacap) Power Plant Project (captured in Record ID#34748). Bank of China and CDB also provided loans for Phase 3 of the Jawa-8 (Cilacap) Power Plant Project (captured in Record ID#46420 and ID#61465).