The Japan Bank for International Cooperation (JBIC) has agreed to provide $2.05 billion for the construction of a 2 GW coal-fired power plant in Batang Regency, Central Java. The plant will be built and operated by Bhimasena Power Indonesia, a JV comprising Indonesian coal company, Adaro Energy and Japanese companies Electric Power Development Company and Itouchu Corporation. The electricity generated at the plant will be sold to Indonesia’s state-owned utility, Perusahaan Listrik Negara (PLN) for 25 years. The total investment for the project was $4.2 billion, of which $3.4 billion would be in the form of loans. Apart from JBIC, a syndication of nine commercial banks – including Sumitomo Mitsui Banking Corporation, Bank of Tokyo-Mitsubishi UFJ, Development Bank of Singapore and Overseas Chinese Banking Corporation – will also provide the funds. The plant is expected to commence operations by 2020.
