China Development Bank supports China Chengda Engineering Co. Ltd.'s issuing of $140 million supplier credit for 200MW Jeneponto Coal-Fired Power Plant Construction Project

Project narrative

In 2007, China Chengda Engineering Co. Ltd. — a Chinese state-owned company — and PT Bosowa Energi (Bosowa Corporation) signed a $140 million supplier credit (loan) agreement for the 200MW Jeneponto Coal-Fired Power Plant Construction Project. This loan carried the following borrowing terms: a 7-year maturity and a 6% annual interest rate. China Chengda Engineering Co. Ltd., in turn, secured a loan (most likely an export seller’s credit) with a 10-year maturity from China Development Bank (CDB) in order to finance the supplier credit. Bank Rakyat Indonesia (BRI) also issued a $60 million loan in support of the $200 million project. The purpose of the project was to install a 200-megawatt (MW) coal-fired power plant — with two 100MW generators (Unit 1 and Unit 2) — in Punagayya Village, Bangkala District, Jeneponto Regency, and South Sulawesi Province (exact locational coordinates: -5.6180, 119.5488). China Chengda Engineering Co. Ltd. was the EPC contractor responsible for implementation. On August 19, 2007, a formal groundbreaking ceremony was held. The power plant was initially planned to be completed in 2009. However, the project was temporarily halted when CDB suspended loan disbursements pending the outcome of another project. The plant was officially inaugurated on December 19, 2012. Chinese Ambassador to Indonesia, Liu Jian Chao, attended the inauguration ceremony and said that ‘This project was built on a cooperation agreement between the Chinese government and the Indonesian government. We are committed to continuing to assist infrastructure development in this country.’