JAKARTA (TheInsiderStories) - Local power producer, PT Tanjung Power Indonesia (TPI)-a joint venture between PT Adaro Power where a subsidiary of PT Adaro Energy Tbk (IDX: ADRO)) with PT EWP Indonesia, unit of Korea East-West Power Co. Ltd-signed a syndicated loan worth US$409 million from a syndicate of six banks to finance the project, said the company in a press statement.
The steam power plant of 2×100 megawatts (MW) located in Tabalong, South Kalimantan need an investment of $545 million. In this project, Adaro tucked the 65 percent stake and the remaining 35 percent is owned by EWP.
Mahardika Putranto, Corporate Secretary ADRO explained, the consortium banks have provide loans include Korea Development Bank, The Bank of Tokto Mitsubishi UFJ, Ltd., DBS Bank Ltd., Mizuho Bank Ltd., Sumitomo Mitsui Banking Corporation, and HSBC.
Later, the electricity generated from this project will be sold to state-owned power firm PT Perusahaan Listrik Negara in accordance with the term of the agreement which is 25 years after the completion of the construction phase.
As is known, Adaroo have completed the funding for 2×1.000 MW power project in Batang, Central Java, under PT Bhimasena Power Indonesia with total investment $4.2 billion.