WÃ¤rtsilÃ¤'s Indonesian gas power plant projects granted Finnish Export Credit financing
WÃ¤rtsilÃ¤ Corporation, Press release, 22 January 2014 at 9 am (EET)
Standard Chartered Bank has signed two 12-year term loan facilities for EUR 160
million with PT Perusahaan Listrik Negara (Persero) (PLN), the national
electricity company of Indonesia. The loans will be used to finance two PLN gas
power plant projects, which include the procurement of 35 WÃ¤rtsilÃ¤ 34SG gas
fired engines. Finnvera, the Finnish export credit agency (ECA) owned by the
State of Finland, issued export credit guarantees for the loan facilities while
Finnish Export Credit, a subsidiary of Finnvera, provides the funding for both
WÃ¤rtsilÃ¤ announced the power plant contracts in October 2013. The two gas power
plants will have a total output of 339 MWs and will supply electricity to over
The 184 MW Arun power plant will be powered by a total of 19 WÃ¤rtsilÃ¤ 34SG
engines running on liquefied natural gas (LNG). The plant, which is to be built
in Lhokseumawe in Aceh Special District in northern Sumatra, will be the largest
gas engine based peaking power plant in Indonesia. The electricity produced will
be used to ensure stable output from the grid.
The Bangkanai power plant is a 155 MW gas engine based plant. WÃ¤rtsilÃ¤ will
supply 16 WÃ¤rtsilÃ¤ 34SG engines to the plant, which will be located in Bangkanai
in Central Kalimantan on the island of Borneo. It will produce electricity for
the Kalimantan grid.
Nur Pamudji, President Director of PLN said: "PLN is committed to a programme of
investment in the Indonesian power sector in order to support economic
development in the country and will continue to develop its investment program
to increase the capacity and reliability to provide a better service to the
customers. PLN aims to reduce its reliance on fuel oil and improve its fuel mix
to decrease the production cost thereby reducing the subsidy."
Topi Vesteri, Executive Vice President of Finnvera, said: "Finnvera and Finnish
Export Credit are pleased to be supporting the delivery of WÃ¤rtsilÃ¤'s technology
to PLN. The two projects are important deals for the Finnish company that will
export the gas engines from Vaasa, Finland. The new plants will increase the
power generation capacity and support development in their respective regions.
Finnvera's commitments in Indonesia have almost doubled during 2013, and we
expect to see several interesting new projects in the country that offers
growing opportunities for Finnish exporters."
Torsten Richter, Head of Export Finance Europe, Standard Chartered Bank, said:
"We are proud to play a key role in supporting PLN and WÃ¤rtsilÃ¤ to deliver
additional power generation capacity in Indonesia. These transactions
demonstrate our client centric strategy and expertise in supporting clients who
are investing into Indonesia, a key country within our footprint market."
Markus PietikÃ¤inen, Vice President, Group Treasury & Financial Services,
WÃ¤rtsilÃ¤, added: "We are delighted to support PLN in accessing competitive
export credit financing, which complements WÃ¤rtsilÃ¤'s power plant solutions.
Both Finnvera and Standard Chartered are important customer finance partners for
us and we are pleased with their support to our valued long term customer PLN."
WÃ¤rtsilÃ¤ Press release 21 October 2013: WÃ¤rtsilÃ¤ to supply 184 MW peaking gas
power plant to Indonesia
For further information, please contact:
Vice President, Group Treasury and Financial Services
Tel: +358 10 709 5630
Senior Manager, Media & Stakeholder Relations
Tel: +358 400 267555
WÃ¤rtsilÃ¤ in brief
WÃ¤rtsilÃ¤ is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, WÃ¤rtsilÃ¤ maximises the environmental and economic performance of the
vessels and power plants of its customers. In 2012, WÃ¤rtsilÃ¤'s net sales
totalled EUR 4.7 billion with approximately 18,900 employees. The company has
operations in nearly 170 locations in 70 countries around the world. WÃ¤rtsilÃ¤ is
listed on the NASDAQ OMX Helsinki, Finland.
PLN in brief
PLN is a state electricity corporation in Indonesia which is wholly owned by the
Government of Indonesia. PLN has 11 direct subsidiaries, including 5
subsidiaries engaging in power generation or integrated electricity supply.
Other direct subsidiaries engage in other businesses in support of the
operations. As an integrated utility company, PLN owns and manages generation,
transmission and distribution side throughout Indonesia.
Currently, PLN owns almost 37 GW including rentals of generating capacity or
83% of Indonesia total power generation capacity. As of November 2013, PLN total
customers reached 53,5 million and there is still ample room for growth given
that the electrification ratio is still below 80% with the expected electricity
growth is over 8% per year.
With 48,000 employees, PLN is committed to serving its customers throughout
Indonesia, reducing its reliance on fuel oil, lowering production cost and also
introducing more renewable energy into the system.
Finnvera and Finnish Export Credit in brief
Finnvera and its subsidiary Finnish Export Credit (FEC) are the official Export
Credit Agencies (ECAs) of Finland. Finnvera offers a competitive portfolio of
export credit guarantees backed by the full faith and credit of the Republic of
Finland. FEC offers financing for export credits and interest equalisation.
Standard Chartered in brief
Standard Chartered is a leading international banking group. It has operated for
over 150 years in some of the world's most dynamic markets and earns around 90
per cent of its income and profits in Asia, Africa and the Middle East. This
geographic focus and commitment to developing deep relationships with clients
and customers has driven the Bank's growth in recent years. Standard Chartered
PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay
and National Stock Exchanges in India.
With 1,700 offices in 70 markets, the Group offers exciting and challenging
international career opportunities to over 88,000 staff. It is committed to
building a sustainable business over the long term and upholding high standards
of corporate governance, social responsibility, environmental protection and
employee diversity. Standard Chartered's heritage and values are expressed in
its brand promise, 'Here for good'.
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Source: WÃ¤rtsilÃ¤ Oyj Abp via GlobeNewswire