JAKARTA (TheInsiderStories) - PT Adaro Energy Tbk (IDX:ADRO) is eyeing three major power plant projects that will be tendered by the state electricity company PT PLN, after achieving financial close for Batang and Tanjung Power plant projects, a company official said.
President Director of Tanjung Power Indonesia (TPI) Muhammad Effendy said there are a number of projects that are being tendered by PLN, namely Jawa-Bali 3 and Jawa-Bali 4 with installed capacity of 500 MW each, as well as a mine mouth project in Kalimantan with installed capacity of 200-300 MW.
“In principle, we take part if there are tenders. We have started the bidding process (for those projects) this year,” he said.
The company partners with other parties including foreign companies in the tender, with combined value of USD3 billion.
CEO of Adaro Energy Garibaldi Thohir said the Tanjung Power (TPI) power plant is a showcase that can be an alternative for cooperation with China and Japan companies.
PLTU Tanjung Power with installed capacity of 2×100 MW located at Tabalong in South Kalimantan owned by PT Tanjung Power Indonesia (TPI), a JV company established by PT Adaro Power and PT East-West Power Indonesia (EWPI).
Adaro, said Thohir, achieves financial close for two major power plant projects within six months, namely financial close for Batang power plant with installed capacity of 2×1000 in July last year, and financial close for TPI on Jan. 23, 2017.
The total cost to develop TPI reached US$545 million. Adaro has signed financial close amounting to USD422 million for Tanjung Power plant on Jan. 23, with 6 banks — namely Korea Development Bank, the Bank of Tokyo-Mitsubishi UFJ, Ltd., DBS Bank Ltd, Mizuho Bank Ltd., Sumitomo Mitsui Banking Corporation and the Hongkong Shanghai Banking Corporation Ltd.
The project uses the project finance scheme in which KSURE from Hyundai Corporation pledges guarantee of USD400 million.
The electricity from TPI will be purchased by PLN for a period of 25 years since the commercial operation date (COD). The power purchase agreement has been signed on Oct. 15, 2014. The project is scheduled to begin operation in mid 2019.
The coal will be supplied by PT Adaro Indonesia with contract of 25 years. Adaro, said Thohir, will continue to support he government’s program to develop 35,000 MW of power plan program.
Meanwhile, Coordinaing Minister for the Economy Darmin Nasution praised the achievement of Adaro Energy in finalizing the financial deal for the Tabalong coal fired power plant. The power plant, once operating, will strengthen the electricity supply in Kalimantan area. (*)