Financial close reached for Central Java Coal-fired IPP Project

Electric Power Development Co., Ltd. has announced financial closure for the development of the 2000 MW Bhimasena Power Indonesia project.

The total project investment is estimated at US$4.3 billion. Project finance loan agreement amounted around US$3.4 billion. It has been arranged 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. 

Shearman & Sterling advised Bhimasena Power Indonesia (BPI), the operating company of the project, on the development and financing the project. BPI's shareholders are Electric Power Development Co. (34%), Adaro Power (34%) and Itochu Corporation (32%),  

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.

PLN, Indonesian state-owned electric power utility, will be the power purchaser for the project under a 25-year power purchase agreement (PPA). 

This project is Asia’s largest scale IPP project to construct a coal-fired power plant with a total capacity of 2,000 MW in Batang regency, Central Java, Indonesia, where demand for electric power is expected to increase. 

Construction work for the power plant will advance, aiming at commercial operations starting from June 2020 (first unit) and December 2020 (second unit) under the construction plan.