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PLN expedites financial closure of Tanjung Jati B power plant expansion
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Two employees of state-owned electricity firm PLN walk at a power plant complex. (Kontan/Cheppy A. Muchlis)
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tate-owned electricity firm PLN is optimistic it will achieve the financial closure for the expansion of the 2,000-megawatt Tanjung Jati B coal-fired power plant in Jepara, Central Java, this month.
PLN president director Sofyan Basir and PT Bhumi Jati Power (BJP) president director Norihiko Nonaka signed a security statement and warranties agreement for the project, alongside a co-financing date certificate in Tokyo on Monday.
In a statement, Sofyan said the achievement marked an important moment of cooperation between the two parties. He expressed his hope that the move would bring forward the project’s financial closure to March 31 from the previously targeted date of June 7.
(Read also: PLN still negotiating with Sugar Group Company over Lampung transmission project)
PLN and electricity firm BJP—whose shareholders are Sumitomo Corporation, United Tractors and Kansai Electric Power—signed a power purchase agreement (PPA) in December 2015, which was amended last September.
The project, also known as PLTU Jawa-4, is estimated to need up to Rp 44 trillion (US$3.3 billion) in investment and will consist of two units.
They are expected to start operating in the second half of 2021 and produce around 15.9 terawatt hours per year.
The power plant is part of the Fast-Track Program II initiated by the administration of former president Susilo Bambang Yudhoyono. (tas)
