Successful Financing
Korea East-West Power Corporation (EWP) announced on Feb. 8 that it held a ceremony that celebrates the provision of funds for a coal-fired thermal power plant project on a build-operate-transfer (BOT) basis in Jakarta, Indonesia, on the 7th (local time).
The EWP-West Power-Adaro Power consortium obtained the project from PT PLN, the state-owned electricity company of Indonesia, through an international competitive bidding in March 2012, beating two consortiums consisting of foreign companies.
EWP will own and operate the power plant for 25 years. It will also carry out construction management and operations and maintenance (O&M) services. Hyundai Engineering will deliver engineering, procurement, and construction (EPC) for the project, while Korea Trade Insurance Corporation (K-sure) and Korea Development Bank (KDB) will finance the project.
PT.TPI, a joint venture in Indonesia between EWP and Adaro Power, will be provided US$400 million (458.4 billion won) of funds through a project finance, which is the long-term financing of projects based upon the projected cash flows of the project without the guarantee of a holding company like EWP. The company succeeded in winning the funds from creditors led by K-sure with the competitive financial conditions.
An official from EWP said, “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 (3.09 trillion won) for 25 years after the construction until 2044 through a stable electricity sales contract with PT PLN.”