ITOCHU Announces Execution of Loan Agreement for Central Java Coal-fired IPP Project in Republic of Indonesia
June 3, 2016
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that PT. BHIMASENA POWER INDONESIA (headquartered in Jakarta, the Republic of Indonesia; Mohammad Effendi, President Director; hereinafter “BPI”), the operating company to which contributions are made by the following three companies, ITOCHU, Electric Power Development Co., Ltd. (headquartered in Chuo-ku, Tokyo; Masayoshi Kitamura, President), and PT ADARO POWER of Indonesia (a wholly owned subsidiary of PT ADARO ENERGY Tbk. (headquartered in Jakarta, the Republic of Indonesia; Garibaldi Thohir, President)), executed the project finance loan agreement for the total amount of around 3.4 billion US dollars (hereinafter the “Loan Agreement”) with Japan Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mitsubishi UFJ Trust and Banking Corporation, Shinsei Bank, Limited, The Norinchukin Bank, DBS Bank Limited and Overseas-Chinese Banking Corporation today.
This project is Asia’s largest scale IPP project to construct a coal-fired power plant with a total capacity of 2,000,000 kW in Batang, Central Java, Indonesia, where demand for electric power is expected to increase, and to supply electric power to the Indonesian state-owned electric power utilities (PLN) under the agreement for long-term electric power selling over twenty five years. This project is also the first public private partnership (PPP) project using the guarantee of the Indonesia Infrastructure Guarantee Fund (IIGF) under the control of the Ministry of Finance of Indonesia, which will be implemented as part of the Masterplan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI).
This project is characterized by the use of subbituminous coal from Indonesia as the fuel for electric power generation and the adoption of the power generation method (1,000,000 kW x 2) using the ultra-supercritical (USC) pressure technology with little burden on the environment, which will be a model case of environmentally friendly, high-efficiency power generation*1 .
Construction work for the power plant will advance, aiming at commercial operations starting from May 2020 (first unit) and November 2020 (second unit) under the construction plan.
ITOCHU will promote eco-friendly power generation projects represented by the high efficiency coal-fired one above.
- *1Power plant using energy efficiently by using the appropriate technologies for harmonization with the surrounding environment
Outline of the Central Java Coal-fired IPP Project in Indonesia
|Location||Batang, Central Java, the Republic of Indonesia|
|Power generation method||Coal-fired ultra supercritical (USC) pressure power generation|
|Capacity||2,000,000 kW (1,000,000 kW x 2)|
|Fuel||Subbituminous coal from Indonesia|
|Scheme||Build-Own- Operate-Transfer (BOOT) scheme|
|Contributors||Electric Power Development Co., Ltd.: 34%
PT ADARO POWER: 34%
ITOCHU Corporation: 32%
|Purchaser of electric power and term of agreement||Purchaser: PLN (Indonesian state-owned electric power utilities)
Term: 25 years after start of operation
|Maintenance and management||BPI|
|Process||June 2020: start of operations of first unit
December 2020: start of operations of second unit
Location Map of the Power Plant