Bank of China provides $454.9 million loan for 945MW Banten Lontar Power Plant Construction Project

On May 4, 2009, Bank of China and Perusahaan Listrik Negara (PLN) — an Indonesian government-owned corporation that has a monopoly on electricity distribution in Indonesia and generates the majority of the country's electrical power — signed a $454,974,082 loan agreement for the 945MW Banten Lontar Power Plant Construction Project. The loan carried the following terms: a 13-year maturity, a 3 year grace period, and an interest rate of 6-month LIBOR (1.356% in May 2009) + a 2.3% margin. The proceeds of the loan were to be used by the borrower to partially finance the $820 million cost of an EPC contract between PLN and a consortium consisting of Dongfang Electric Corporation and Dalle Energy (an Indonesian firm), which was signed on August 7, 2007. The purpose of the project was to install a 945-megawatt (MW) coal-fired power plant — with three 315MW generators (Unit 1, Unit 2, and Unit 3) — in Lontar Village in Banten Province (locational coordinates: -6.0588745, 106.4643002). The electricity generated by the power plant is transmitted through the PLTU substation, the Teluk Naga substation, and then Tangerang Baru substation. Construction took place between January 6, 2009 and February 13, 2012. Unit 1 was officially inaugurated and put into commercial use on December 28, 2011. Unit 2 was put into commercial use on February 29, 2012. Unit 3 was put into commercial use on April 10, 2012. The project was officially completed and handed over to the local authorities on December 28, 2012.

Additional details

1. This project is also known as the PLTU 3 Banten-Teluk Naga 3x315MW Power Plant Project, the 945MW Banten Lontar Power Station Project, the PLTU 3 Teluk Naga/Lontar Project, the PLTU 3 Banten Project, the Banten-Lontar Power Plant Project, and the 3x315 MW PLTU 3 Banten — Lontar Project. The Chinese project title is 印尼龙湾3×315MW燃煤机组电厂 or 印尼龙湾燃煤电站. 2. This project was part of the Government of Indonesia’s ‘fast-track program’.

Number of official sources

15

Number of total sources

40