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

Project narrative

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that was issued on May 9, 2018, China Eximbank delivered a repayment schedule to the borrower and stated any funds not withdrawn would automatically be cancelled.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. A 2022 annual PLN report stated the project had reached 86% completion, but in May 2024 the project was described as stalled.