The Asian Development Bank (ADB) announced the first drawdown of funds under a private sector financing package totaling more than USD 305 million invested in Jawa-1, which would be the largest combined-cycle gas turbine (CCGT) power plant in Indonesia. This is demonstrating Indonesian government’s commitment to reduce coal dependency and diesel fuel, in favor of cleaner Energy sources.
ADB’s financing package includes a direct loan of USD 185 million, and a parallel loan of USD 120 million provided by the Leading Asia’s Private Infrastructure Fund (LEAP), which is administered by ADB.
The project comprises a 1.760-megawatt CCGT power plant and ancillary Infrastructure in Cilamaya, Karawang, West Java. Jawa-1 will be one of the first and largest projects in Indonesia using LNG. The CCGT power plant will supply Energy to PT. Perusahaan Listrik Negara (PLN), Indonesia’s national power utility, and it is expected to power 11 million Indonesian households from 2021. This project will help Indonesia to avoid as much as 1.77 million tons of carbon dioxide emissions.
ADB’s support for Indonesia’s natural gas value chain dates back to a 2005 loan of USD 350 million for the greenfield development of Tangguh natural gas liquefaction facility. It was followed by a USD 400 million loan for the plant’s expansion in 2016. The Tangguh natural gas liquefaction facility is the most likely source of LNG for Jawa-1.
(Sources: Economic Times; Asian Development Bank)