JBIC provides US$310m loan for gas power plant Java II

JAKARTA (RAMBUENERGY.com) – Japan Bank for International Cooperation (JBIC) on Thursday (Oct. 20) signed a deal to provide financing facility worth US$310 million to fund the development of gas power plant PLTG Java II with capacity of 800 Megawatt (MW).

Chief Executive Officer of JBIC Tadashi Maeda said the loan is provided in the form of direct lending. “We provide the loan without guarantee from the Indonesian government,” Tadashi said in Jakarta on Thursday after the loan signing agreement.

He claimed that this is the first Japanese loan in power sector that is given without guarantee from the Indonesian government. The loan will have a tenor of 15 years and interest rates of 3% per annum.

Tadashi said JBIC provides the loan without guarantee as the investment risks in Indonesia has improved. For instance, the government has set budget deficit to be no higher than 3%.

In addition, JBIC is also looking to provide more loans to fund power projects in Indonesia, including the upcomin gas power plant PLTGU Java I.

Director for Planning and Risk Management of PLN said the project requires funding of US$437 million. The remaining funds needed will come from PLN’s internal cash, he said.

The PLTG Java I is located at Tanjung Priok, North Jakarta. The project construction is scheduled to be completed in 2019. (*)

 

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