PT Tanjung Power Indonesia
TPI is a consortium of AP (65%) and PT East-West Power Indonesia (35%), a subsidiary of Korea East-West Power Co Ltd. to develop a 2×100 MW coal-fired power plant in the Tabalong district, South Kalimantan. The total project cost is estimated to be US$545 million, and in January 2017, TPI reached financial close and received commitments of US$422 million (including a contingency facility of US$13 million).The financing is done on a project finance basis, with KSURE providing comprehensive cover of approximately US$400 million.
This project will sell electricity to PLN under a PPA for a period of 25 years from the COD. TPI started construction in June 2016, six months before reaching financial close, by using shareholder funds, demonstrating strong commitment from its shareholders to the success of the government’s electrification push. The Government of Indonesia, through the Ministry of Finance, provides a government guarantee to this project in the form of a Business Viability Guarantee Letter, under which the government guarantees PLN’s ability to fulfil its payment obligations as stipulated in the PPA.
The power plant will use CFB technology which reduces NOx emissions due to its low combustion temperature. It will also use bag filters to eliminate ash emissions. The EPC contractor for the project is Hyundai Engineering Co Ltd. Operation and maintenance of the power plant will be handled by TPI. At the end of 2017, the cumulative construction progress was 85.7%. All major heavy equipment has been delivered safely to project site and special facilities, including the transmission line, have been completely constructed.
TPI’s focus in 2018 is to complete construction and prepare for the operation and maintenance phase. TPI is committed to achieve COD in 2019 as planned and will contribute to power supply in South and Central Kalimantan area. When fully operational, the plant will consume up to 1 Mt coal per annum and AI will supply the required coal.