PLN get loan facilities JPY27 billion, US$142 million from Japan’s bank

Photo by JBIC

JAKARTA (TheInsiderStories) – PT Perusahaan Listrik Negara (PLN), a state-owned power producer signed a loan agreement for buyer’s credit up to JPY27 billion and US$142 million with Japan Bank for International Cooperation (JBIC), The Bank of Tokyo-Mitsubishi UFJ, Ltd., and Nippon Export and Investment Insurance (NEXI). The deal signed on June, 20.

JBIC portion of the total loan worth of JPY10.1 billion and $53 million, Bank of Tokyo-Mitsubishi bringing the total co-financing approximately JPY16.9 billion and $89 million, with NEXI providing insurance for the portion co-financed by the private-sector bank.

JBIC’s Governor Akira Kondoh said in a written statement, the loan is intended to provide financing for PLN to purchase a complete set of facilities, including boilers (IHI Corporation) and steam turbine power generators (FUJI ELECTRIC CO., LTD.), from ITOCHU Corporation and other entities for the construction of a Kalselteng 2 coal-fired power plant with capacity 2×100 MW in South Kalimantan Province.

In order to respond to the country’s surging electricity demand which has risen in line with continued economic growth, the Indonesian government has committed to promote its 35 giga watts (GW) power plants development plans. The Kalselteng 2 coal-fired power plant is part of this power development plan.

The proposed project will be financed by corporate loan and the remaining will be financed by PLN’s own budget. At least 50 percent of the loan portion shall be covered under Export Credit Agency and the remaining loan portion shall be covered by the lenders or any other sources without government guarantee and no collateral.

PLN said those firms and voluntary formed consortia, joint-ventures, joint operations companies from Indonesia and the Organization for Economic Cooperation and Development (OECD) country members which has diplomatic relation with Indonesia are eligible to take part in the bid.

(Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com)