China Eximbank provides $117 million preferential buyer’s credit for 110MW Jatigede Hydropower Plant Construction Project (Linked to Record ID#38861)

Project narrative

On September 3, 2013, China Eximbank and the Government of Indonesia signed a $117,000,000 preferential buyer's credit (PBC) agreement [China Eximbank PBC No. (31) Total No. (275)] for the Jatigede Hydropower Plant Construction Project. The PBC carried the following borrowing terms: a maturity of 11y 10m 18d, a grace period of 2y 4m 18d, an interest rate of 3.00%, and a 0.2% management fee, and a commitment fee of 0.2%. The loan went into effect on September 3, 2014 and its closing date was September 9, 2016. The first principal payment was scheduled for January 21, 2016 and the last principal payment was scheduled for July 21, 2025. The condition precedent for the first disbursement was fulfilled, and first loan withdrawal was on December 24, 2013. The proceeds of the PBC were to be used by the borrower to partially finance a $135 million commercial (EPC) contract between Perusahaan Listrik Negara (PLN) — an Indonesian state-owned electricity company — and Sinohydro Corporation Limited. The purpose of the project was to construct a 110MW hydroelectric power plant on the Cimanuk River in Sumedang Regency, West Java. It is located 19 km (12 mi) east of the town of Sumedang (exact locational coordinates: 6°51′23″S 108°05′41″E). Sinohydro Corporation Limited and a consortium of Indonesian contractors were responsible for project implementation. Donfang Electric Corporation (DEC) was the supplier of two 55 MW water turbine-generator sets. Construction commenced on October 2, 2015. The plant's construction reached a 73% completion rate in October 2019 after developers finished excavating a 2,200 meter tunnel to channel water from the reservoir to the dam's turbines. Then, in December 2019, PLN announced that the 110MW hydropower plant was expected to start operations in 2020. China Eximbank also provided a separate loan for Jatigede Dam Construction Project (captured in Record ID#38861). In 2021, the project was completed and began operating.