Korea Trade Insurance Corporation (K-sure) and Korea Development Bank (KDB) are the joint financiers for a coal-fired thermal power plant project to be built in Indonesia. This was announced in a ceremony held on Wednesday to celebrate the turnover of funds.
The power plant, which will be built by a consortium composed of Korea East-West Power (EWP) and Adaro Power, will be on a Built-Operate-Transfer basis, and will be operated by EWP for 25 years. EWP will also provide construction management and operations & maintenance services.
Meanwhile, Hyundai Engineering will be in charge of the engineering, procurement, and construction for the project.
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The EWP-Adaro consortium won the project from PT PLN, Indonesia’s state-owned electric company, in an international competitive bidding held on March 2012. It edged out two other consortiums consisting of foreign firms.
The creditors, led by K-sure, will provide PT.TPI, an Indonesian joint venture between EWP and Adaro Power, with US$400 million in funding through a project finance scheme.
An official from EWP told Business Korea: “The plant will start commercial operation in March 2019. Export of electric power business promoted by the government will expand further, and the company will turn over US$2.7 billion for 25 years after the construction until 2044 through a stable electricity sales contract with PT PLN.”
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