Publicly listed coal mining company Indika Energy is in the process of securing US$2.1 million for its 1-gigawatt coal-fired power plant (PLTU) Cirebon CEP-2 in West Java.
Financial closure for the project is expected to be achieved in the first half of 2017, Indika Energy president director Arsjad Rasjid said on Thursday.
Bank loans are expected to cover 80 percent of the funds, while another 20 percent is prepared by a consortium led by the Japan Bank for International Cooperation (JBIC) and Export–Import Bank of Korea, according to Arsjad.
Meanwhile, work on the ground, like the preparation of land for the project, had already begun, said Arsjad, adding that construction was expected to start soon, as the company was actually required to finish the project in early 2020.
The PLTU Cirebon CEP-2 project is part of the company’s expansion to increase its production capacity.
Indika Energy has also built the PLTU Cirebon CEP-1 plant with a capacity of 660 megawatts.
“We have 280 hectares of land, 80 hectares of which have been used for PLTU Cirebon CEP-1, the remaining 200 hectares are actually enough to construct three more power plants, including the one that we are going to establish soon with a capacity of 1 GW,” Asrjad said. (yon)