PLN signs power contracts with Chinese firms

Apr 26, 2008 02:00 AM

Indonesian state power firm PLN signed two engineering procurement contracts (EPC) worth $ 888 mm in total with two Chinese companies for the construction of two coal-fired power plants in East Java and Aceh.
PLN signed the EPC contract for the 700-MW Tanjung Awar-awar power plant in East Java with a consortium of China National Machinery Equipment Corp. (Sinomac), China National Electric Equipment Corp. (CNEEC) and a local company, Penta Adi Samudra, with the contract estimated to be worth $ 642 mm.

PLN signed another contract worth $ 247.4 mm for the 200-MW Nagan Raya plant in Nanggroe Aceh Darussalam with another Chinese company, Sinohydro. PLN president director Fahmi Mochtar said the projects were expected to be completed within 2 years, with the first unit of the plant starting commercial operation in October 2010, followed by the second one in January 2011.
Both plants are part of the government's 10,000-MW power plant project, initially scheduled for completion by the end of nextyear, but the deadline is likely to be extended due to financial problems.

The program will see PLN build 10 coal-fired power plants with a total capacity of 6,900 MW in Java and 25 power plants with a total capacity outside Java. The program is targeted for completion by 2010. The program is aimed at raising the country's electricity provision, which currently stands at 56 %. This means 45 % of Indonesia's population still lives in the dark.
Approximately 15 % of financing for the Tanjung Awar-awar and Aceh plants will come from PLN equity, while the remaining 85 % will come from credit commercials or global bonds.

Fahmi said the two projects had only managed to secure rupiah-denominated loans, while the company is still in talks with a number of lenders to finance the projects.
"We are still seeking the best alternative we can find to get the loans we need," Fahmi said.
The head of the government's power sector development team, Yogo Pratama, said so far the company had secured 60 % of the$ 8.3 bn needed to build the power plants under the government's 10,000 MW project.

Financial status of the power project
Power plant -- location -- rupiah-denominated loans (in tn Rp) -- bank -- dollar denominated loans (in mm $) -- bank
600-MW Labuan Banten -- Java -- 1.18 -- BCA -- 288.6 -- in talks with Bank of China
900-MW Indramayu -- West Java -- 1.2 -- BNI -- 592.2 -- Bank of China
600-MW Rembang -- Central Java -- 1.9 -- Mandiri -- 261.8 -- Barclays
600-MW Suralaya -- Banten -- 0.735 -- Mega -- 284.3 -- China Export Import Bank
600-MW Paiton -- East Java -- 0.6 -- Mega -- 330.8 -- China Export Import Bank
600-MW Pacitan -- East Java -- 1.045 -- consortium of Mega and Bukopin -- 293.2 -- not yet secured
900-MW Teluk Naga -- Banten -- 1.6 -- idem -- 454.9 -- idem
900-MW Plb. Ratu -- Banten -- 1.87 -- idem -- 481.9 -- idem
600-MW Tj. Awar -- East Java -- 1.49 480 -- Awar
200-MW Tarahan Baru -- Lampung -- 459.9 -- 119.2
400-MW Pkl. Susu -- North Sumatra -- 780.8 -- 209.3
50-MW Jiranjang -- West Nusa Tenggara -- 273.8 -- 23.8
50-MW Gorontalo -- Gorontalo -- 264.8 -- 25.8
50-MW Amurang -- North Sulawesi -- 304.5 -- 27.3
14-MW Tj Balai Karimun -- Riau -- 71.2 -- 7
14-MW Ende -- East Nusa Tenggara -- 73.2 -- 7.9
200-MW Kendari -- Southeast Sulawesi -- 97.1 -- 10.3
200-MW Nagan Raya -- Aceh -- 0.795 -- 161
120-MW Pulang Pisau -- Central Kalimantan -- 413.9 -- idem -- 62.1 -- idem -- 62.1

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