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

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.

Additional details

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 Project ID#34748). Bank of China and CDB also provided loans for Phase 3 of the Jawa-8 (Cilacap) Power Plant Project (captured in Project ID#46420 and ID#61465).

Number of official sources

10

Number of total sources

21