Japan agrees $3.4bn loan for coal plant
By Paul Homewood
Meanwhile, back in the real world:
The Japan Bank for International Cooperation (JBIC) agreed on a $3.4bn loan to finance the Batang coal power project.
The coal-fired power project has faced delays due to reluctance of landowners to facilitate its construction as well as a failure until now to secure financial close.
JBIC will contribute just over $2bn to the loan to fund the 2,000 MW coal-fired power plant in Central Java. Other Japanese banks including Sumitomo Mitsui, Mizuho and Bank of Tokyo-Mitsubishi are also joining the loan, JBIC said in a release late on Friday.
Indonesia’s Supreme Court had earlier thrown out a landholders’ lawsuit on technical grounds, paving the way for the government to take over the remaining land for the project.
PT Bhimasena Power Indonesia (BPI) – a joint venture set up by Indonesian coal miner PT Adaro Energy Tbk and Japan’s Itochu Corp and Electric Power Development Co (J-Power) – is building and operating the project.