Narrative
Full Description
Project narrative
On January 30, 2008, the Export-Import Bank of China and Perusahaan Listrik Negara (PLN) — an Indonesian state electricity distribution company — signed a $284,288,744 USD buyer's credit agreement for the 625MW Banten Suralaya Power Plant Construction Project. The loan carried the following terms: a 15-year maturity, a grace period of 3 years, and an interest rate of 6-month LIBOR (3.779% in January 2008) + a 0.84% margin. The proceeds of the loan were to be used by the borrower to finance 85% of a $428 million EPC contract between PLN and China National Technical Import and Export Corporation (CNTIC), which was signed on March 21, 2007. According to PLN, this agreement marks the first foreign bank financing of PLN as a direct borrower. The Indonesian Ministry of Finance provided a sovereign guarantee. The purpose of the project was to expand an existing coal-fired power complex — consisting of 7 power generation units — by adding an eighth, 625 MW power generation unit in Suralaya Village, Pulomerak District, Cilegon City, and Banten Province (exact locational coordinates: -5.8892179, 106.0336018). CNTIC was the contractor responsible for implementation. Construction began in early 2008, with an originally anticipated project completion date was March 12, 2010. The project had achieved a 16.85% completion rate as of April 2008. A boiler hydrotest was undertaken on September 17, 2009. Turbine installation work was completed on March 26, 2010. The power plant was put into operation on August 22, 2011.
Staff comments
1. This project is also known as 625MW PLTU 1 Banten Suralaya Power Station Construction Project and the PLTU3 Banten TPP Project. The Chinese project title is 印尼Suralaya1x625MW or 印尼苏娜拉亚1X625MW 燃煤电站项目 or 印尼苏娜拉亚电站项目 or 印尼苏拉拉亚60万千瓦电站项目. The Indonesian project title is Proyek PLTU 1-8 Suralaya. 2. In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, it identifies the loan commitment (signature) year as 2009. However, AidData has coded the loan commitment year as 2008 based on the precise loan signature date (January 30, 2008). 3. This project is part of a larger $610 million commitment (the remainder of the funding recorded via Record ID#38604). It is also linked to other projects under the Government of Indonesia’s ‘fast-track program’ (captured via Record ID#38546, #38600, #38601, #38602, #38606, #38609, #38610, #38611, #38614, and #38604.