China Eximbank provides $132.1 million preferential buyer's credit to Indonesia for Parit Baru Power Plant Project (Linked to Project ID#72360)

On November 12, 2012, China Eximbank and the Government of Indonesia signed a $132,189,694.53 preferential buyer's credit (PBC) agreement for the 100MW Parit Baru Power Plant Construction Project. The PBC, which went into effect on May 2, 2013, carried the following borrowing terms: a 15 year maturity, a 7 year grace period, a 3% interest rate, and a management fee of $264,379.39. The proceeds of the PBC were to be used by the borrower to partially finance a $172 million commercial (EPC) contract with China Gezhouba Group Corporation (CGGC). On July 17, 2017, the PBC agreement was extended from July 2, 2017 to May 2, 2018. As of May 2, 2018, $101.79 million had been disbursed and $30.40 million remained undisbursed. Then, in a letter that was issued on May 9, 2018, China Eximbank delivered a repayment schedule to the borrower and stated any funds not withdrawn would automatically be cancelled. The purpose of the project was to construct a power plant — with two 50MW power generation units — in Jungkat Village within Siantan District, Pontianak Regency, West Kalimantan Province (exact locational coordinates: 0.05798, 109.20362). A joint venture of CGGC and PT Praba Indopersada (a subsidiary of the Indonesian general contractor Praba Group) was responsible for project implementation. In March 2013, 78 Chinese-national workers at the Parit Baru construction site were threatened with deportation for lacking proper work authorization. Then, on September 5, 2013, the project officially commenced. By the fourth quarter of 2016, the China Eximbank PBC had disbursed $66.71 million and the project had achieved a completion rate of 77.97%. By the second quarter of 2018, the China Eximbank PBC had disbursed $101.79 million and the project had achieved a 97.89% completion rate. The first 50MW power generation unit was commissioned in June 2018. The second 50MW power generation unit passed final inspection and was accepted by Perusahaan Listrik Negara (PLN) — an Indonesian state electricity distribution company that served as the project owner — in November 2019. The project passed a final inspection and was formally accepted by PLN on September 3, 2020.

Additional details

1. This project is also known as the Parit Baru Coal-Fired Steam Power Plant Project (2×50MW) or the New Trench Power Plant Project. The Indonesian project title is Proyek PLTU Parit Baru. The Chinese project title is 印度尼西亚巴比巴卢燃煤电站项目. 2. The Government of Indonesia loan identification number is 21661901. 3. This loan was issued after a $200 million pledge was made by the Chinese government in 2005 to provide preferential funding for several infrastructure projects in Indonesia (as captured via Umbrella Project ID#72360)

Number of official sources

9

Number of total sources

19