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Japan agrees $3.4bn loan for coal plant

June 7, 2016

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.

  1. AndyG55 permalink
    June 8, 2016 1:19 am

    Darn ,, that will push coal prices even lower.

    As an Aussie, I wish Indonesia well, even though they relegated us to 4th in the world’s coal producing stakes. 😦

    • AndyG55 permalink
      June 8, 2016 1:21 am

      oops mis-read a bit..

      Great to see Indonesia are using the coal to produce their own electricity 🙂

  2. June 8, 2016 3:42 pm

    Japan is also in big trouble with the International Green/Lefty Blob for failing to throw open its doors and lay red carpets for migrants. The broadcast wing of this blob (aka the BBC World Service) is orchestrating the wailing and finger-pointing, so regime change must be imminent, following the success of this strategy with Canada and Australia, and soon with Poland, and the UK if its dares to …

  3. June 11, 2016 12:06 pm

    Just watch who supplies the technology and plant, the Japanese learned from the old UK approach of lending money to support their industry: long forgotten in the UK, (post-Thatcher), but well learned in Germany, Russia, China, India and Japan.

    Who has got it right?

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