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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on March 10 a loan agreement in buyer's credit (export loan) totaling up to approximately JPY9.2 billion and USD22 million (JBIC portion) with PT PLN (Persero) (PLN), a state-owned power company in Indonesia. The loans are cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Facility Agent), Mizuho Bank, Ltd., and Australia and New Zealand Banking Group Limited, bringing the total cofinancing amount to approximately JPY15.4 billion and USD37 million, with Nippon Export and Investment Insurance (NEXI) providing insurance for the portion cofinanced by the three private-sector banks.
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The loan is intended to provide financing for PLN to purchase a complete set of facilities, including gas turbine and steam turbine (MITSUBISHI HITACHI POWER SYSTEMS, LTD.) and power generator (Mitsubishi Electric Corporation), from Mitsubishi Corporation and other entities for the construction of a 500 MW Muara Karang gas-fired combined cycle power plant in Jakarta on the island of Java, Indonesia.
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In order to respond to the country's surging electricity demand which has risen in line with continued economic growth, the Indonesian government has committed to promote its "35 GW power plants development plans" for the five years from 2015 to 2019. The Muara Karang gas-fired combined cycle power plant is part of this power development plan. Through JBIC's support for the export of power generation equipment by Japanese companies, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries, and, at the same time, it is expected to support Indonesia's economic development by realizing steady power supply.
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As Japan's policy-based financial institution, JBIC will continue to financially support the export of infrastructure-related facilities as well as the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
