Asian Bank deploys funds marked for Indonesian LNG-fueled power plant

The Asian Development Bank is helping finance one of the largest combined-cycle gas turbine power plants in Indonesia.

The ADB announced the first drawdown of funds under the financing package totaling more than $305 milllion for the Jawa-1 project. The 1,760-MW power plant is in Cilamaya, Karawang of West Java.

Jawa-1 is unique in that it is directly connected to and will be fueled by the liquified natural gas (LNG) supply chain. The bank’s financing package includes $185 million in direct loans and $120 million in a parallel loan provided by Leading Asia’s Private Infrastructure Fund, which is administered by ADB.

“ADB is a partner of choice in Indonesia’s strategy to finance low-carbon power generation through private sector participation,” said Michael Barrow, Director General for ADB’s Private Sector Operations Department. “This project will support the country’s efforts to strengthen the liquefied natural gas (LNG) supply chain and increase energy security, while helping to reduce power generation costs.”  

Jawa-1 is expected to power 11 million Indonesian households from 2021, supporting the country’s 100 percent electrification target by 2024. The project will create about 4,800 jobs during construction and 125 jobs when the plant is operational.

A consortium that includes GE, Sansung C&T and PT Meindo Elang Indah will handle the engineering, procurement and construction contracts for Jawa-1, according to reports.

A nearby project, Jawa 2, (pictured) started trial operation earlier this year. Mitsubishi Corp, MHPS and Wasa Mitra are working on that plant.



No posts to display