Korea Trade Insurance Corporation (K-sure) and Korea Development Bank (KDB) are the joint financiers for a coal-fired thermal power plant project to be built in Indonesia. This was announced in a ceremony held on Wednesday to celebrate the turnover of funds.
Indonesian online marketplace to venture into fintech
The power plant, which will be built by a consortium composed of Korea East-West Power (EWP) and Adaro Power, will be on a Built-Operate-Transfer basis, and will be operated by EWP for 25 years. EWP will also provide construction management and operations & maintenance services.
Meanwhile, Hyundai Engineering will be in charge of the engineering, procurement, and construction for the project.
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
The EWP-Adaro consortium won the project from PT PLN, Indonesia’s state-owned electric company, in an international competitive bidding held on March 2012. It edged out two other consortiums consisting of foreign firms.
The creditors, led by K-sure, will provide PT.TPI, an Indonesian joint venture between EWP and Adaro Power, with US$400 million in funding through a project finance scheme.
An official from EWP told Business Korea: “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 for 25 years after the construction until 2044 through a stable electricity sales contract with PT PLN.”
Korea Trade Insurance finances UK biomass project
E-commerce startup to supplement online gap with offline agents