Completed Mixed AidData Chinese Aid

Bank of China provides $371.5 million buyer’s credit loan for 700MW Tanjung Awar-Awar Power Plant Construction Project

$371.51M USD

Funder	Bank of China (BOC)
Recipient Organization	PT Perusahaan Listrik Negara (Persero) (PLN)
Country	Indonesia
Start Date	Dec 14, 2009
End Date	Mar 03, 2032
Duration	8,115 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`38611`

Grant Description

Bank of China provides $371.5 million buyer’s credit loan for 700MW Tanjung Awar-Awar Power Plant Construction Project On December 14, 2009, Bank of China (BOC) and Perusahaan Listrik Negara (PLN) — an Indonesian state electricity distribution company — signed a $371,509,145 buyer’s credit loan agreement for the 700MW Tanjung Awar-Awar Power Plant Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountcarried the following terms: a 13-year maturity

📅 Maturity13 years

⏳ Grace Period3 years

The loan’s final maturity date is in December 2022. The borrower also purchased buyer’s credit insurance from Sinosure.

The proceeds of the loan were to be used by the borrower to partially finance the $588 million cost of an EPC contract between PLN and a consortium consisting of China National Machinery Equipment Corp. (Sinomach), China National Electric Equipment Corp. (CNEEC), and a local company, PT Penta Adi Samudra, which was signed on April 25, 2008.

Bank Negara Indonesia and Bank Rakyat Indonesia also issued loans worth $101.92 million in support of the project.

The purpose of the project was to install a 700-megawatt (MW) coal-fired power plant — with two 350MW generators (Unit 1 and Unit 2) that are directly cooled by seawater — in Wadung Village, Jenu District, Tuban Regency, and East Java Province (locational coordinates: -6.8105242, 111.9955033).

Unit 1 began implementation in December 2009 and opened in December 2012 and Unit 2 commenced operations in October 2013. The project achieved its commercial operations date (COD) in February 2014. The project owner (PLN) issued a Takeover Certificate (TOC) for Unit 2 on September 22, 2016.

📋 Staff Comments

This project is also known as PLTU 3 Jatim Tanjung Awar-Awar 2×350MW Coal-Fired Steam Power Plant Project. The Chinese project title is 印尼阿瓦阿瓦电站项目 or 印度尼西亚AWAR AWAR 2X350MW 电站.
This project is part of the fast-track program by Indonesian government to add power plants around the country, which total to about 10000 MW.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

PLN secures Chinese loans for power plants program after Merpati spat solved
Conditionality in Chinese bilateral lending
Power Loans Tied Up Over Merpati
PLN secures part of the loans needed for 10,000 MW program
Govt to deal with China loan problems of Merpati and PLN
RI resolves rifts with China, mends ties
PLN to secure $761m in loans from Chinese banks in June
Funding Spat Puts the Brakes On Fast-Track Power Project
PLN Hopes to Secure ‘Fast-Track’ Funds From China Despite Financing Freeze
PLN to Borrow $761m From China for Fast-Track Program
PLN secures final financing needed for first 10,000 MW power plant crash program
Indonesia: Chinese financing in PLN's 'fast-track' program
PLN signs $888m power contracts with Chinese firms
Tanjung Awar-Awar power station
PLN secures $371 million loans from Chinese bank
中交集团签订印尼TJ.AWAR-AWAR电站码头总承包合同
中国银行将向印尼发电项目提供3.715亿美元贷款
PLN Teken Sisa Pinjaman 10 Ribu MW
PLTU Tanjung Awar Raih Dana US$371 Juta
Quantifying Chinese Public Financing for Foreign Coal Power Plants
Indonesian National Power Company won 370 million US dollars loan from Bank of China, 2011 Bond Prospectus
印尼AWAR-AWAR 2X350MW燃煤电站
中交集团签订印尼TJ.AWAR-AWAR电站码头总承包合同
Tanjung Awar-Awar power station
EPC Contract of AWAR-AWAR 2×350MW Coal Fired Power Plant Signed Successfully
AWAR-AWAR 2X350MW Thermopower Plant
Indonesia
Unit 2 of CNEEC Awar-Awar Project in Indonesia Gets TOC!
MODIFIKASI OUTLET COALBUNKER DAN OUTLET COAL FEEDER UNTUK MENGATASI PLUGGING BATUBARA DI PLTU TANJUNG AWAR-AWAR TUBAN, 2017 Government of Indonesia Bond Prospectus
印尼国家电力公司获中国银行3.7亿美元贷款
Supplementary Online Material: List of projects to which China has provided public financing (2007-2013)
Annual report 2014 PLN
Tanjung Awar-Awar power plant
East Java
Indonesia
Hundreds of Residents Block Tuban PLTU Project
Demand PJB Manager be Dismissed
Residents of 5 Villages Demonstrate Against Tanjung Awar-Awar Tuban PLTU Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.