Narrative
Full Description
Project narrative
On January 30, 2008, China Eximbank and Perusahaan Listrik Negara (PLN) — an Indonesian state electricity distribution company — signed a $330,825,515 buyer's credit agreement for the 660MW Jatim Paiton Power Plant Expansion Project. The loan carried the following terms: a 15-year maturity, a 3 year grace period, and an interest rate of 6-month LIBOR (3.779% in January 2008) + a 0.84% margin. The loan’s final maturity date was January 23, 2023. The proceeds of the loan were to be used by the borrower to finance 85% of the $522.8 million cost of an EPC contract between PLN and a consortium consisting of PT Mitra Selaras Hutama Energi (a local Indonesian company) and Harbin Power Engineering Company Limited, which was signed on March 12, 2007. Indonesia's Ministry of Finance provided a guarantee for the loan. The purpose of the project was to expand an existing coal-fired power complex — consisting of 8 power generation units — with a ninth, 660MW power generation unit in the village of Binor, the district of Paiton, the regency of Probolinggo, and the province of East Java (exact coordinates: -7.7110289, 113.5706815). Harbin Power Engineering Company Limited and PT Mitra Selaras Hutama Energi were the EPC contractors responsible for implementation. The project achieved its commercial operations (COD) date on May 9, 2013.
Staff comments
1. This project is also known as the 1x660MW PLTU 2 Jatim Paiton Power Plant Construction Project, the East Java 2 – New Paiton Unit Power Plant Project, and Unit 9 of the Paiton Power Station Project. The Chinese project title is 印尼百通1×660MW燃煤电站项目. 2. This project is part of a larger $610 million commitment (the remainder of the funding recorded in Record ID#37864). It is also linked to other projects under the Government of Indonesia’s ‘fast-track program’ (captured in Record ID #s #38546, #38600, #38601, #38602, #38606, #38609, #38610, #38611, #38614, and #37864).