Jawa 1 nears close on DFI/ECA-backed loan
PT Jawa Satu Power – a joint venture between state-owned energy company Pertamina and Japan’s Marubeni and Sojitz Corporation – is expected to sign a $1.26 billion DFI/ECA-backed facility in November this year to finance construction of the 1,760 MW Jawa 1 combined-cycle power plant in West Java, Indonesia.
The $1.8 billion project, which is scheduled for operation in mid-2021, was awarded as a BOOT concession and includes the construction of a 70,000m3 FSRU, gas loading and unloading facilities, storage tanks and a substation, the installation of GE 9HA.02 gas turbines, transformers and generators, and the laying of a 52km, 500kV transmission line. A consortium of GE, Samsung C&T and PT Meindo Elang Indah won the EPC contract in March this year and Jawa Satu Power also signed a 25-year O+M agreement with GE Power Services. The scheme is also backed by a PPA with PLN.
Financed on a debt-to-equity ratio of 70/30, the 15-year facility comprises a commercial bank tranche wrapped by NEXI, a JBIC direct loan, an uncovered international bank tranche, and a multilateral facility provided by ADB. Financial advisers on the deal are Credit Agricole and Mizuho. The margin is priced around 200bp over Libor.
