Michael Barrow, Director General for ADB's Private Sector Operations Department, 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 LNG supply chain and increase energy security, while helping to reduce power generation costs.
According to the statement, the project consists of a 1760 MW CCGT power plant and ancillary infrastructure in Cilamaya, Karawang, West Java. ADB’s financing package includes a direct loan of US$185 million, and a parallel loan of US$120 million provided by the Leading Asia’s Private Infrastructure Fund (LEAP), which is administered by ADB.
ADB claims that Jawa-1 will be one of the first and largest projects in Indonesia to use LNG, illustrating the Indonesian Government’s desire to reduce dependency on coal and diesel fuel in favour of cleaner domestic energy sources, such as natural gas. The power plant will reportedly supply energy to PT. Perusahaan Listrik Negara (PLN) – Indonesia’s national power utility. It is expected that the project will help Indonesia eliminate 1.77 million t of CO2 emissions.
Jawa-1 is expected to power 11 million Indonesian households from 2021, supporting the country’s 100% electrification target by 2024. The project will create around 4800 jobs during construction, and 125 jobs when the plant is operational.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/01052019/adb-finances-largest-ccgt-power-plant-in-indonesia/