Bank of China contributes $1 billion to $1.389 billion syndicated buyer’s credit loan for 1000MW Cilacap Power Plant Phase 3 Expansion Project (Linked to Record ID#34801, #34748, #61465)

Project narrative

On September 19, 2016, PT Sumber Segara Primadaya (S2P) — a joint venture of PT Sumberenergi Sakti Prima (SSP) and PT Pembangkit Jawa Bali (PJB) — signed a $1.398 billion syndicated buyer’s credit loan with Bank of China, China Development Bank (CDB), and Bank Rakyat Indonesia for the 1000MW Cilacap Power Plant Phase 3 Expansion Project. SSP holds a 51% ownership stake in S2P and PT Pembangkit Jawa Bali (PJB) — a subsidiary of Perusahaan Listrik Negara (PLN), an Indonesian state electricity distribution company — holds a 49% ownership stake in S2P. The borrowing terms of the loan are unknown. However, it is known that Bank of China contributed $1 billion (captured in Record ID#69234), China Development Bank contributed $98 million (captured in Record ID#61465), and Bank Rakyat Indonesia (a local bank) contributed $300 million to the syndicated loan. It is also known that the borrower was to use the proceeds of the loan to finance an EPC contract between PLN and China Chengda Engineering Co., Ltd., which was signed on June 5, 2015. The purpose of the project was to install a fourth unit (with 1000MW of power generation capacity) at the Jawa-8 Coal-Fired Power Plant (also known as the Cilacap Power Station). The plant is located in the villages of Karangkandri, Menganti and Slarang within Kesugihan subdistrict, Cilacap Regency, and Central Java province. China Chengda Engineering Co., Ltd. was the general EPC contract responsible for implementation. S2P and PLN signed a Power Purchase Agreement (PPA) on October 30, 2015 and S2P expected the power plant to begin commercial operations within 39 months of the loan signature date (i.e. December 19, 2019). A formal groundbreaking ceremony took place on October 12, 2016. However, construction did not begin until November 17, 2016. The power plant passed a 168-hour test run and it was put into commercial operation on November 9, 2019. The project was formally handed over to the Indonesian side on May 8, 2020, marking its official completion. Bank of China also provided an additional loan for Phase 1 of the Jawa-8 (Cilacap) Power Plant Project (captured in Record ID#34801) and CDB provided an additional loan for Phase 2 of the Jawa-8 (Cilacap) Power Plant Project (captured in Record ID#34748).