State-owned energy company Pertamina has said it is finalizing a US$1.44 billion deal to finance its 1,760-megawatt (MW) steam and gas power plant (PLTGU) project in West Java, the PLTGU Java 1, which is located close to the ONWJ oil and gas block in Cimalaya.

The fund is 80 percent of the project's Rp $1.8 billion investment value.

Pertamina finance director Arief Budiman said the company and other members of the PLTGU Java 1 consortium were finalizing the financial close for the project.

A consortium comprising Pertamina, Marubeni Corporation and Sojitz Corporation signed a power purchase agreement (PPA) with PLN earlier this year, under which the consortium will sell the electricity generated by PLTGU Jawa-1.

“It is still in the finalization stage. I expect that it will reach financial close as scheduled,” he said on Sunday as quoted by kontan.co.id.

He added that they expected to reach financial close in September.

Arief, however, denied that the creditors had demanded the consortium's assets as collateral for the international funding, specifically the oil and gas ONWJ Block, which the government recently granted to Pertamina.

“The target in September was determined by state-owned electricity company PLN. We were initially offered to reach financial close in July, but the most important thing is that progress is good and the lenders are very supportive of the project,” he said.   

PLTGU Java 1 will be the largest gas-powered power plant in Southeast Asia. (bbn)