Central Java Coal Fired Power Plant Project Achieves an Award from IJ Global Award 2016

Shortly after receiving PFI Award, BPI along with sponsors and representatives of the lenders received an award from Infrastructure Journal Global (IJ Global) at Singapore Marriot Tang Plaza Hotel, Singapore. The award has given to the project of Central Java Power Plant which became a landmark project in Indonesia as the largest project finance deal in Indonesia with amount US$ 3.4 billion. 

BPI as the developer of the project is the first Independent Power Producer (IPP) project to use the Public-Private Partnership (PPP) and secured guarantee from Indonesia Infrastructure Guarantee Fund (PII) and the Indonesian Government (Ministry of Finance) in relation to fulfillment of PLN's obligations. 

"We are proud of this extraordinary achievement. We are also deeply  grateful for the support and close cooperation from the central and regional government, the lenders and also the public that allows the project to run smoothly," said BPI President Director Takashie Irie.

Central Java Power Plant Project had faced numerous challenges which made the project took five years to achieve financial close since it was first initiated by signing on Power Purchase Agreement on 2011. With full support from the government, cooperation from the lenders, the project secured US$ 3.4 billion in financial close in June 2016. The Financial Close for Central Java Power Plant involved Japan Bank for International Cooperation (JBIC) and a syndication of 9 (nine) commercial banks, i.e. SMBC, BTMU, Mizuho, DBS, OCBC, Sumitomo Trust, Mitsubishi Trust, Shinsei and Norinchukin.

Irie added that the award can become a reference for investors in relation to the commitment of the governments in supporting the business development in Indonesia. The trust from the lenders in this project illustrates that Indonesia has a prospective and conducive investment climate.