Thursday, 21 March 2019 | 20:34 WIB

Bukit Asam’s Subsidiary Secures Funding of USD1.2 Billion from CEXIM

Central Office of PT Bukit Asam Tbk.

JAKARTA, NNC - PT Bukit Asam Tbk (IDX:PTBA)'s subsidiary, PT Huadian Bukit Asam Power, obtained a loan of USD1.26 billion from China Export Import Bank (CEXIM). The loan will be used to finance the construction of Sumsel 8 Mine Mouth Steam Power Plant.

Huadian Bukit Asam and CEXI have signed a loan facility agreement for the 2x620 MW power plant on May 23, 2018 in Jakarta. The signing was done by President Director of Huadian Bukit Asam Geng Kecheng and Vice President of CEXIM Xu Li.

"CEXIM will provide a loan of 75 percent of the total project cost or USD1.26 billion. The remaining USD420 million will be funded by the stakeholders, i.e., PTBA amounting to 45 percent and China Huadian Hongkong Company Ltd 55 percent," said Suherman, Corporate Secretary of PTBA, in an official statement, Thursday (5/24/2018).

Sumsel 8 Mine Mouth Steam Power Plant is part of a 35,000 MW megaproject where Huadian Bukit Asam acts as Independent Power Producer (IPP).

"The construction of the steam power plant will commence in the third quarter of 2018 with a construction period of 42 months for unit I and 45 months for unit II. It is expected to reach Commercial Operation Date (COD) in 2021 for unit I and 2022 for unit II," he explained.