Power Purchase Agreements signed for Cirebon Expansion Power Plant Project in Indonesia

Cirebon Energi Prasarana (CEPR) has entered into a long-term power purchase agreement (“PPA”) with the Indonesian state-owned electricity utility, Perusahaan Listrik Negara (PLN) for the sale of electricity for 25 years in respect of the expansion project of the Cirebon coal fired power plant, which has been in operation since July 2012, located in the West Java Province of Indonesia.

CEPR is a special purpose company sponsored by Marubeni Corporation, PT. Indika Energy Tbk, Samtan Co., Ltd., Korea Midland Power Co., Ltd. (Komipo), and Chubu Electric Power Co., Inc.

CEPR will develop and construct a coal fired power plant with a generating capacity of 1,000 MW. Commercial operation is scheduled in 2020. Thereafter the electricity generated by the project will be supplied to PLN based on the PPA.

CEPR expects to procure the main equipment of its power plant from Japanese manufacturers and secure financing through project finance by international commercial banks and export credit agencies such as Japan Bank for International Cooperation, Nippon Export and Investment Insurance and Export-Import Bank of Korea.

Indonesia, under President Joko Widodo’s administration which was formed last year, has set a target to provide an additional 35 GW of power capacity in the next 5 years as part of policies for infrastructure improvement. As a result, there is a high expectation for overseas IPP developers to supply power to meet an increasing demand under the growing economy. This Project is regarded as the first large-scale IPP project under the 35 GW development program and Marubeni will continue to contribute to stable power supply and economic development in Indonesia