Tuesday, April 04, 2017

PT Bhumi Jati Power (“BJP”) has satisfied the required conditions precedent for the project financing of the Tanjung Jati B coal-fired power plant Units 5 & 6 Expansion Project or also called Pembangkit Listrik Tenaga Uap (PLTU) Jawa-4 (“Project”) and commenced construction work on the Project on March 31, 2017. BJP is owned by Sumitomo Corporation, The Kansai Electric Power Co., Inc., and PT United Tractors Tbk, through wholly-owned subsidiaries, respectively Sumi  Energy Ventures LLC, KP Power Development B.V. , and PT Unitra Persada Energia.

This BOT (Build, Operate and Transfer) Project will cost approximately US$4.2 billion, and the project cost mainly funded with the loan  from the Japan Bank for International Cooperation (JBIC) and a syndication of seven commercial banks: Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mitsubishi UFJ Trust and Banking Corporation, The Norinchukin Bank, and Singapore’s Oversea-Chinese Banking Corporation Limited covered by NEXI Overseas Investment Insurance.

BJP will build two new units of a high efficiency ultra-supercritical coal-fired power plant (generation capacity of 2,000 MW) that introduces efficient and environmentally friendly technology in an area adjacent to the existing Tanjung Jati B coal-fired power plant (Units 1-4), located in Jepara Regency, Central Java. The power plant will supply electricity over a period of 25 years to Indonesian power utility company PT PLN (Persero), following the completion of plant construction.

The project is scheduled to achieve commercial operation in 2021 and positioned as a part of 35,000MW power plants construction program promoted by Indonesian government.

Profile of PT Bhumi Jati Power (“BJP”)

BJP is a joint venture company established for the purpose of development and operation of the Project. PT Unitra Persada Energia holds 25% shares, Sumi Energy Ventures LLC holds 50% shares, and KP Power Development B.V. holds 25% shares in BJP.