Paritohan and Kuala Tanjung 2+1 x 350 MW

Paritohan and Kuala Tanjung 2+1 x 350 MW

20-Mar-2016

PNO.1312_11

• Project Owner : PT. ILM (Indonesian company run by government)

• Plant Type & Size : COAL FIRED POWER PLANT (2+1 x 350 MW)

• Processing Method : CAPTIVE (To use for its own company)

• Facility Location: Paritohan & Kuala Tanjung

• Business Permit Status : Approved

• Purchase Price & Contract : PPA to be obtained after establishing SPC

• Raw material Supply Contract : LT Contract with current supplying company

• B.P, E/S, F/S: B.P, E/S Completed, F/S in progress.

Project Description:

Established in 1976 as a joint venture between ILM and NAA from Japan until October, 2013. Currently, Indonesian government owns 100% of its shares. The major operation of this company includes aluminum smelter with producing aluminum ingot. Currently, the company is in need of increase in electrical supply to expand its smelting furnace to increase the production. Self-raising electricity is not just for the production facility but to connect with production of aluminum as well. Thus, it has plan to build 2 facilities of 350 MW by 2019. After 2019, the company has plans to build additional facility of 350 MW. The total project size is USD 1.05 billion.

Proposal:

When SPC is established with 30% equity, the debt financing of remaining 70% may be financed by the financial institution. Therefore, ILM proposed that it could invest 9% of the 30% equity portion.

Key Facts:

• ILM is a “Brownfield” company which is already in operation.

• The company plans to build smelting furnace to increase electrical supply and increase aluminum production

• Extra electricity produced by ILM may be sold to industrial complex at a price 2x the cost

• Currently, in process of selecting EPC and in discussion with potential participating companies

• Project owner wants Co-Developers to participate within the 30% equity

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