Plans to expand the Paiton power station in Indonesia have moved forward with the signing of a project financing loan agreement by the plant’s developer.
Independent power producer PT Paiton Energy has signed a $1215 million loan agreement with the Japan Bank for International Cooperation (JBIC) and eight commercial banks. The deal will accelerate construction work on the Paiton III project.
The 815 MW supercritical coal-fired plant will be constructed next to an existing power plant in the Paiton complex, approximately 150 km southeast of Surabaya, East Java, by a consortium of Japanese firms. It is slated for commercial operation in 2012 and will be the largest and most efficient coal fired plant in Indonesia.
Mitsubishi Heavy Industries (MHI) says that it has received an order from PT Paiton Energy for the power plant. Civil construction work will be undertaken by TOA Corporation of Japan, while Mitsui & Co. Ltd. will handle the trade particulars.