Mitsui & Co., Ltd. ("Mitsui") hereby announces that PT Paiton Energy ("PE"), an independent power producer in Indonesia, partially owned by Mitsui (*), has signed a US$1.2 billion project financing agreement on March 8th, 2010 with Japan Bank for International Cooperation and eight commercial banks to finance an expansion project ("Expansion Project"), for which total cost is US$1.5 billion.
Mitsui, as a major sponsor of PE since its foundation in 1994, has been continuously engaged in the operation and management of PE, which achieved commercial operation of a 1,230 MW thermal power plant at the Paiton Complex in 1999. PE will build, own and operate an additional 815 MW thermal power plant in the proximity of the existing plant and will generate and supply electricity to the state-owned electricity power company, PT PLN (Persero) ("PLN") for 30 years. The Expansion Project is anticipated to commence commercial operation in April 2012.
Taking advantage of its expertise in the power plant business in Indonesia obtained through the operation and management of PE, Mitsui has been active in leading the development of the Expansion Project. The Government of Indonesia and PLN have been encouraging the introduction of additional power generating facilities and promoting independent power producer projects to meet the continuously increasing demand for power in Indonesia. The Expansion Project will share the existing on-site facilities of the existing power plant and this will enable PE to achieve efficient operation and a reduction in capital costs, thereby enabling PE to serve the development of Indonesia by supplying competitive electricity.
The construction and operation of power projects is one of the primary focuses of Mitsui's infrastructure business, and the company will continue to develop its investment portfolio in such business field. Through development of this project, Mitsui will own 5,964MW of net generating capacity worldwide (which includes power plants under construction as well as the power project in Mexico for which Mitsui announced that it entered into a purchase agreement on December 24th, 2009). With the global increase in power demand, Mitsui will further promote its global power business by developing new projects of this kind and achieving the stable operation and management of its portfolio.
||PT. Paiton Energy
(Power Station located at Paiton, Province of East Java)
|Date of Establishment
|Line of Business
||Generate and supply electricity to the state-owned electricity power company, PLN
||Mitsui : 36%
IPM Eagle LLP(*) : 45%
The Tokyo Electric Power Company, Inc. : 14%
PT. Batu Hitam Perkasa (local company) : 5%
||Existing Project 1,230MW (615MW x 2)
Expansion Project 815MW
Gross Capacity 2,045MW
(Capacity owned by Mitsui 1,012MW)
* IPM Eagle LLP : jointly owned by International Power (70%) and Mitsui (30%)
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