CDB and ICBC provide $138.3 million loan for 224MW Sumbar Teluk Sirih Power Plant Construction Project

On October 14, 2009, China Development Bank (CDB) and the Industrial and Commercial Bank of China (ICBC) signed a $138,336,845 loan agreement with Perusahaan Listrik Negara (PLN) — an Indonesian state electricity distribution company — for the 224MW Sumbar Teluk Sirih Power Plant Construction Project. This loan carried the following terms: 13-year maturity, 3 year grace period, and an interest rate of 6-month LIBOR (0.590% in October 2009) + a 3.85% margin. The loan’s final maturity date is October 14, 2022. The proceeds of the loan were to be used by the borrower to finance an EPC contract between PLN and China National Technical Import and Export Corporation (CNTIC). The purpose of the project was to install two 112MW power generation units (Unit 1 and Unit 2) at the Sumbar Teluk Sirih Power Plant (PLTU) in Bungus Teluk Kabung District, Padang City, West Sumatra Province. CNTIC and PT Rekayasa Industri were the contractors responsible for implementation. The Sumbar Teluk Sirih Power Plant Construction Project started in 2013. Testing of Unit 1 was undertaken on July 5, 2014. Then, on July 7, 2015, Unit 1 was handed over to the project owner (PLN). PLN issued a final acceptance certificate (FAC) to CNTIC on December 30, 2016.

Additional details

1. This project is also known as the 2x112 MW PLTU Sumbar Teluk Sirih Power Plant Construction Project, the PLTU Sumbar 2x112MW Power Plant Project, and the PLTU Sumbar Project. The Chinese project title is 西苏2x11.2万千瓦燃煤电站项目 or 西苏电站项目. 2. CNTIC refers to the project as the Sumatera Barat Power Plant Project. 3. The project was part of the fast-track program by Indonesian government to add power plants around the country, which totaled to about 10000 MW. 4. Norton Rose and Hadiputranto Hadinoto & partners served as legal advisers for the loan agreement.

Number of official sources

15

Number of total sources

26