ADB to fund $305m for 1.7GW power plant in Indonesia

WCN Editorial Team 30 Apr 2019 ASIA ENERGY & UTILITIES

The Asian Development Bank (ADB) has agreed to provide more than $305m for the construction of the a 1.7GW combined-cycle gas turbine (CCGT) power plant, Jawa-1, to be located in Cilamaya, Karawang, West Java, Indonesia.

The project is owned by Jawa Satu Power and the electricity generated from the power plant will be sold to the country’s national power utility PT. Perusahaan Listrik Negara (PLN).

The power plant will include a LNG floating storage and regasification unit (FSRU), 500kV power transmission line and a substation.

ADB’s loan includes $185m in direct loan and parallel loan of $120m provided by the Leading Asia’s Private Infrastructure Fund (LEAP), which is administered by ADB.

LEAP is one of ADB’s co-financing vehicles to support private sector infrastructure in Asia Pacific.

Touted to be one of the largest power projects in the country, Jawa-1 exemplifies the Government of Indonesia’s commitment of reducing dependency on coal and diesel fuel for a cleaner and better alternative energy source, natural gas.

Once operational in 2021, the project is expected to help avoid nearly 1.77 million tons of carbon dioxide emissions and will generate enough electricity to power up to 11 million households in the country.

The project also supports the government’s ambition of 100% electrification by 2024.

During the construction phase, nearly 4,800 jobs will be created and 125 permanent jobs will be created, when the project becomes operational.

ADB private sector operations department director general Michael Barrow said: “ADB is a partner of choice in Indonesia’s strategy to finance low-carbon power generation through private sector participation.

“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.”

In 2005, ADB approved a loan of $350m for the green-field development of Tangguh natural gas liquefaction facility, which was followed by a $400m loan for the plant’s expansion in 2016.  The Tangguh natural gas liquefaction facility is a likely source of LNG for Jawa-1.

The Jawa-1 will be built on a 36.7 hectares site along the Coast of Java Sea. It will include two gas turbines and two heat recovery steam generators (HRSG) from GE, two cooling towers, a control and an electrical building and other associated facilities.

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Image: ADB offers financing for the Jawa-1 CCGT project. Photo: Courtesy of The Asian Development Bank.

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