Wednesday, November 20, 2019
Securing its Name in the Global Market
KOMIPO secures funds to construct a thermal power plant in Cirebon, Indonesia.
Securing its Name in the Global Market
  • By matthew
  • April 15, 2010, 17:05
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Korea Midland Power Company (KOMIPO) has secured US$600 million through Project Finance (PF) in regards to its overseas power plant construction projects. With this, KOMIPO became the first power company in Korea to achieve such great outcome. On March 8, KOMIPO held a “Signing Ceremony for Fund Procuring of Cirebon Thermal Power Plant Project” at the Ritz Carlton Hotel in Jakarta, Indonesia. In attendance were the Indonesian Minister of Finance and the Minister of Energy and the Korean and Japanese ambassadors to Indonesia, representing the two countries participating in the project through a consortium. US$600million, which is 70% of the total funds needed for the project, is being raised in the form of PF through four international commercial banks, including the Export-Import Bank of Korea and the Export-Import Bank of Japan.

The Cirebon Thermal Power Plant Project (Cirebon Project) in Indonesia involves the construction of a 660MW thermal power plant in Cirebon, 250 km east of Jakarta in order to combat the prolonged problem of insufficient electricity in the region. This project is the first, large-scaled, private-capital power plant project that the Indonesian government has placed through international bidding. Construction of the Cirebon Project began in 2008 and is scheduled to be completed later this year. Upon completion, KOMIPO will operate the plant for the next thirty years.

KOMIPO is the second largest shareholder of the project, and is in charge of construction management and plant operation, while Samtan, a Korean energy company, will be in charge of providing fuel for power generating and Doosan Heavy will be in charge of the planning, manufacturing and provision of power-generating facilities. By successfully raising funds for the project, KOMIPO now stands in a favorable position in Indonesia and the Southeast Asian region for possible future projects, as well as setting a good example for the Korean government which is striving to promote domestic power companies for overseas projects. Furthermore, with the export of Korean power companies, partnering companies will also have the opportunity to become involved in the projects, eventually leading to the creation of new jobs domestically

Meanwhile, KOMIPO is actively seeking ways to collaborate with local Korean companies to maximize results. On March 16, KOMIPO held a ceremony for the ten CEOs and representatives selected as winners of “The 2nd KOMIPO - Best Partnering & Collaborating Enterprises” Awards. In his welcoming remarks, Nam In-suk, President and CEO of KOMIPO stressed of the importance of supporting small and medium enterprises. Most of the winners from the first such event showed 50% growth in the revenue and 6.7% growth in the number of employees for the past two years. He promised those selected as the ten best collaborating companies of KOMIPO, that the company would actively support them to become globally competitive companies, as well as stressing the importance of them helping each other to achieve this. “My company is now expecting to achieve US$10 billion in profits for the first time in it’s history, thanks to KOMIPO’s various support programs, including “participate in domestic/foreign expos” and “improve work environment,” said Park Jin-Chul, managing director of Daeyang Rollent, a company which received the certificate by KOMIPO two years ago.