Tanjung Jati B Expansion
March, 2009 - Jakarta, Indonesia
Makarim & Taira S. has advised PT Central Java Power, a finance lease company owned by Sumitomo Corporation, on the development of a further 2x660 MW coal fired power plant in Tanjung Jati B, Jepara, Indonesia (TJB 3&4) in addition to the existing 2x660 MW plants leased to and operated by PT PLN (Persero). The use in the project of a finance lease scheme is an innovative if rather complex structure which could in future offer an alternative to the commonly used independent power producer scheme for procurement of electric power in Indonesia. The US$ 2.3 billion project is financed by Japan Bank for International Corporation (JBIC) and syndicates of financial institutions. The firm, which assisted in the initial project (TJB 1&2), has advised on the various Indonesian legal aspects (including regulatory/licensing, structure, land purchase and financing) since 2006. The team was led by partner Rahayu N. Hoed with core members including Benny Bernarto, Evelyn Simanjuntak, Heru Mardijarto, Tasdikiah Siregar and Guy des Rosiers.
