Narrative
Full Description
Project narrative
On May 4, 2009, China Eximbank and the Government of Indonesia signed a $124,339,936 buyer's credit loan (BCL) agreement for the 220MW Meulaboh Power Plant Construction Project. Indonesia’s Finance Minister Sri Mulyani Indrawati witnessed the signing of the agreement. The BCL carried the following terms: a 15-year maturity, a 3-year grace period, and an annual interest rate of 6-month LIBOR (1.356% in May 2009) plus a 2.8% margin. The proceeds of the BCL were used to partially finance a commercial (EPC) contract worth $247.4 million between Perusahaan Listrik Negara (PLN) — an Indonesian state electricity distribution company — and Sinohydro Co. Ltd (now a subsidiary of the Power Construction Corporation of China), which was signed in 2008. The remainder of the EPC contract cost was financed by PLN and Regional Development Bank Association (Asbanda). PLN provided $18,650,990 of local counterpart funding to finance 15% of the EPC contract cost, while ASBANDA covered the reminder of the EPC contract cost through a loan worth approximately Rp614.34 billion. The purpose of the project was to construct a coal-fired power plant — that is located in Suak Puntong Village within Kuala Pesisir Subdistrict, Kab Nagan Raya (Nagan Raya) Regency, and Aceh Province (exact locational coordinates: 4.1073603, 96.1989402) — with power generation capacity of 220MW divided over two 110MW units. The power plant was designed to use a 275 kV transmission network to deliver an electricity supply of approximately 2,803GWh/year, which makes its way to a number of regencies within Aceh Province – including Aceh Jaya, West Aceh, Southwest Aceh, and Nagan Raya. The two, 110MW units use an average of 50,000 tons of coal/month, 90% of which is shipped from Kalimantan to the plant, with the other 10% coming from the more local Mifa Bersaudara coal mine. Sinohydro was the EPC contractor responsible for project implementation. Construction began in April 2008. The first 110MW unit was connected to the grid in March 2013 and put into commercial operation on April 22, 2014. The second unit was handed over to the project owner (PLN) on August 17, 2014.
Staff comments
1. This project is also known as Units 1 and 2 of the 2x110MW PLTU NAD Meulaboh Power Plant Construction Project, the Meulaboh Power Station Project, the Aceh Power Plant Project, and the 220MW Nagan Raya Power Station Project. The Chinese project title is 亚齐电站 or 亚齐电站项目 or 亚齐２×１１０ＭＷ电站项目. 2. The project was part of the Fast Track Program, which is a plan by the Indonesian government to add power plants around the country, which totaled to about 10000 MW. The program covered the construction of 33 (some sources state 32, while others state 35) power plants, 10 of them in Java and Bali, with 23 located off the two main islands.