Indonesia / Loan Insurance for Cirebon2 Ultra-Supercritical Coal Fired Power Plant

November 14, 2017

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI: President and CEO: Kazuhiko Bando) has decided to provide loan insurance to support Cirebon2 ultra-supercritical coal fired power plant project.

The project will be undertaken through PT Cirebon Energi Prasarana (“CEPR” ) which has been founded jointly by Marubeni Corporation (“Marubeni,” Japan), JERA Co., Inc. (“JERA,” Japan), Samtan Co., Ltd. (“Samtan,” Korea), Korea Midland Power Co., Ltd. (“Komipo,” Korea), PT Indika Energy Tbk, (“Indika,” Indonesia) and PT Imeco Inter Sarana (“Imeco,” Indonesia). The project is planning to build a new 1,000MW (1,000MW x 1unit) ultra-supercritical power plant adjacent to the existing unit, which has been in operation since July 2012, in the West Java Province of Indonesia. Through CEPR, Indonesian national electricity power company PT PLN (Persero) will receive power supply as well as services of plant operation and maintenance for 25 years after the commencement of commercial operation.

The CEPR partner JERA will also fully support the plant operation with its abundant knowledge in Japanese power plant operation using the ultra-supercritical technology. As a successful project making the fullest possible use of Japanese support in the form of technology, project development and management as well as financing support, this project is expected to realize more efficient and environment-friendly power development compared with existing sub-critical coal-fired plants.

The project is also in conformity with the intent of “Partnership for Quality Infrastructure” announced by Japanese Prime Minister Shinzo Abe in May 2015, which aims for the realization of sufficient Japanese infrastructure investment in Asian countries in terms of both quality and quantity. NEXI’s support for this project fits with its own service enhancement measures to further encourage the use of private-sector fund and know-how in the development of Japanese business activity in the global market.
To meet the anticipated demand for electricity, Indonesia is planning to develop 35GW power generation capacity by 2019 to stabilize power supply. As base load power plant which plays a central role in this plan, the plant is expected to contribute to social and economic development in Indonesia through stable and environment-friendly power supply by using coal produced in the country.

Under this project, CEPR is planning to raise approximately USD 1,740 million by project financing. In the form of co-financing with Japan Bank of International Cooperation (JBIC) and the Export-Import Bank of Korea, four commercial lenders are going to provide loans and NEXI will provide insurance to support them. The four commercial lenders are Mizuho Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, and ING Bank N.V., Tokyo Branch.

NEXI will continue to actively support Japanese overseas business and infrastructure development in the Asian countries.

Insured Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
ING Bank N.V., Tokyo Branch
Insurable Value Equivalent to USD 487.20million
Tenor Approx. 22 years
Covered Risks Political Risk 100%, Commercial Risk 90%

1 CEPR is owned by Marubeni (35%), JERA (10%), Samtan (20%), Komipo (10%) and Indika/Imeco (25%).