Under the terms of the deal, Cirebon Energi Prasarana (CEPR), a joint venture between Marubeni, PT Indika Energy Tbk, Samtan, Korea Midland Power, and Chubu Electric Power will build the 1GW project, next to the existing Cirebon facility.
The Japanese companies are expected to supply the main equipment for the power plant, which will receive funding from international commercial banks and export credit agencies including Japan Bank for International, Nippon Export and Investment Insurance and Export-Import Bank of Korea.
Planned to be commissioned in 2020, the new $2bn power plant is being built to meet the growing power demand in the country.
Power generated from the plant will be sold to PT PLN, as part of the 25-year power purchase agreement (PPA).
The expansion project is expects to contribute to the Indonesian Government’s plan to have 35GW of additional power capacity in the next five years.
A company spokesman was cited by Reuters as saying that the new power plant will be integrated with Toshiba-built turbines as well as boilers from Mitsubishi Hitachi Power Systems, joint venture of Mitsubishi Heavy Industries and Hitachi.
Featuring ultra super-critical technologies, the facility will be 30% owned by Marubeni, 25% Indika and 20% by Samtan. Additionally, Korea Midland Power and Chubu Electric each own 10% in the project.
Power generated from the $850m Cirebon power plant, which was commissioning in July 2012, is also sold to Persero at a price of 4.43 US cents per kWh, under a PPA signed earlier.
Image: The Cirebon coal fired power plant in Indonesia. Photo: courtesy of Marubeni Corporation.
