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Bukit Asam bags US$1.26 bln in loans from Cexim Bank to fund PLTU Sumsel 8

JAKARTA (RambuEnergy.com) – PT Huadian Bukit Asam Power, a subsidiary of PT Bukit Asam Tbk (IDX:PTBA) has secured loan from the Export Import Bank of China (Cexim Bank) worth US$1.26 billion to fund its mine-mouth power plant PLTU Mulut Tambang Sumsel-8 with capacity of 2×620 MW.

The fund represents 78.75% of the funds needed by Bukit Asam to develop the power plant, which amounting to US$1.6 billion. The remaining funds of US$420 million will be funded from internal cash flow of Bukit Asam.

Bukit Asam President Director Arviyan Arifin said the coal mine-mouth power plant project will be the biggest such project in Indonesia.

Last year, the company has signed power purchase agreement with the state electricity company PT PLN, which paved the way for the project to move ahead.

The loan has tenor of 15 years, with 5 years of grace period. The loan interest was set at 2.85% plus LIBOR (London Interbank Offered Rate).

The mine-mouth power plant will be supported by transmission grid to be developed from New Aurduri in Jambi to Muara Enim in South Sumatera. The electricity supply from this power plant will help meet electricity demand from consumers in the Sumatera Island.

The project is developed in partnership with China Huadian of China.

Highlight of the project:

  • Project Name: PLTU Sumsel 8
  • Location: Muara Enim, South Sumatera
  • Developer: PT Huadian Bukit Asam Power, a joint venture firm of PT Bukit Asam Tbk and China Huadian.
  • Capacity: 2×620 MW
  • Project Cost: US$1.6 billion
  • Loan: US$1.26 billion
  • Loan provider: Export Import Bank of China (Cexim Bank)
  • Groundbreaking: 2018
  • COD: 2021-2022.

Written by Staff Writer, edited by Roffie Kurniawan (email: roffie.kurniawan@gmail.com)

 

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