Central Java Coal Fired Power Plant Awarded as Power Deal Of The Year 2016 for Asia Pacific Region
Jakarta, February 6th, 2017 – Central Java Coal Fired Power Plat (CJ CFPP) 2 x 1.000 MW project won an award from Project Finance International (PFI) for the “Power Deal of the Year 2016” category for Asia Pasific. The award was received by the representatives of CJ CFPP, its sponsors and finance parties of the project at the PFI Awarding Night at Hilton, Park Lane, London, U.K. (1/2).
PFI saw the financing of CJ CFPP indeed heralds the start of a new era of Indonesian power project financing. CJ CFPP is a landmark project in Indonesia as the largest IPP project finance in the region and the first IPP under government PPP programme which provides new scheme of guarantee by IIGF (indonesia Infrastructure Guarantee Fund) and the Ministry of Finance in relation to PLN obligations. And it also overcame the the newly introduced currency law that requires all payments in rupiah for local transaction, resulting in currency convertibility and exchange risk.
The CJ CFPP had faced numerous challenges. It takes fives years for the project to get financial close since the project was awarded on 2011. But with the full support and understanding from the government and lenders, the project has achieved finance close of US$ 3.4billion deal in June, 2016. o The unprecedent scale of project finance in Indonesia involved Japan Bank for International Cooperation (JBIC), and a syndication of 9 commercial banks, i.e. SMBC, BTMU, Mizuho, DBS, OCBC, Sumitomo Trust, Mitsubishi Trust, Shinsei and Norinchukin.
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BPI President Director, Takashie Irie extended his gratitude for the support from all finance parties and government of Indonesia for the project, “We are very proud of this valuable international award given from PFI and we are sincerely thankful for the close support and cooperation from all lenders and the government of Indonesia as well as the community on the site area that enable us to run the project,” said Irie. In addition he affirm that the trust from the finance parties on funding the project shows that Indonesia has a prospective and conducive investment climate.
As one of the power plants with the largest capacity in Indonesia, the presence of CJ CFPP is expected to positively contribute to equitable development and the national economy in order to fulfill national electricity supply, in line with the exponential growth of the economy. “The award becomes a reference for investors, in relation to central and regional governments’ commitment to support the business community in Indonesia. This will be very positive for Central Java and the Indonesian economy,” he explained.
The CJ CFPP Project will be part of the Master Plan for Acceleration and Expansion of Indonesia’s Economic Development which will serve as the main driver of Java’s economic development. This project will also give significant contribution on government targetto provide 3.500 MW of new capacity on 2019.