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Kalselteng-2 Coal-Fired Power Plant Project

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Indonesia`s state-owned electric power company PT PLN is constructing the Kalselteng-2 Coal Fired Power Plant in the South Kalimantan Province of Kalimantan Island, Indonesia, with a total capacity of 200 MW.

Construction of the Project has commenced and is expected to be completed in 2020. This project is an expansion project of the existing coal fired power plants (Units 1 to 4, 65 MW x 4 plants) located in South Kalimantan Province, Kalimantan Island, with the construction of Units 5 and 6.

It will contribute to reducing the environmental load by utilizing the high efficiency equipment for the Project which is comprised of the boilers manufactured by IHI Corporation and the steam turbine generators manufactured by Fuji Electric Co., Ltd.

To support Japanese companies` export, Japan Bank for International Cooperation and MUFG`s banking arm, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) will provide loans (approx. 16.9 billion yen and approx. US$89 million) to PLN as funds for the Project.

The loan provided by BTMU will be covered by insurance from Nippon Export and Investment Insurance. In Indonesia, the demand for electricity is increasing constantlywith the economic growing. In order to meet such forecast, Indonesia has been promoting the 35 Gigawatt Power Plants Development Plan. This Project is positioned as part of this program.

Outline of the Kalselteng-2 Coal Fired Power Plant Project: Client: PT. PLN (Persero), Indonesia’s state-owned electric power company. Construction site: South Kalimantan Province, Republic of Indonesia Power generation method: Coal fired power plant Power capacity: 200 MW (100 MW x 2 plants)

Construction schedule (plan) July 2017: Commencement of construction July 2020: Unit 5 Commercial operation October 2020: Unit 6 Commercial operation

Updates : July 31, 2017:

ITOCHU Corporation announced today that it has concluded an EPC (Engineering, Procurement and Construction) agreement for the construction of the Kalselteng-2 Coal Fired plant with PT PLN, under the consortium that ITOCHU formed with major engineering companies in Korea and Indonesia, namely, Hyundai Engineering Co., Ltd. and PT. Truba Jaya Engineering. The contract amounts to approximately US$400 million. The construction of the Project has commenced and is expected to be completed in 2020.


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