JBIC

Characteristics of Japanese ODA

Administration of Japanese ODA  

PLN reveals $2.2b power plan to link Sumatra and Java

(8 Oct 2009, Reva Sasistiya) -- State utility PT Perusahaan Listrik Negara plans to invest $2.2 billion in an electricity-transmission network in Sumatra, including an underwater link connecting the Sumatra and Java grids for the first time, a company official said on Thursday. The connector will ensure that power from the Sumatra grid can be transferred to Java and Bali when needed, which officials hope will mean fewer power cuts. Sumatra and Java are not currently linked, which means that power cannot be transferred and excess generation is wasted.

PT Geo Dipa's Patuha geothermal plant (West Java) gets state financing

Construction of the $143 million Patuha geothermal plant in West Java will not begin until 2010 because of funding difficulties; completion date has now been pushed to 2012. A $90 million in financing from a consortium of state lenders led by PT Bank Negara Indonesia will be finalized early October 2009. The project is being built by PT Geo Dipa Energy, a jointly owned subsidiary of state oil and gas producer PT Pertamina and state electrical utility PT Perusahaan Listrik Negara, or PLN.

Sri Lankan power workers strike for pay increase & scrap March 09 Electricity Bill

Sri Lankan power workers strike for pay increase (31 Aug 2009, W.A. Sunil) -- Thousands of Ceylon Electricity Board (CEB) workers took part in an islandwide, one-day strike last Friday to demand a 40 percent pay hike, the restoration of working conditions and the scrapping of the Electricity Bill adopted in March 2009. In an attempt to break the strike, the government cancelled all leave and threatened “tough action” against anyone who stopped work.

Team Energy (TEPCO-Marubeni) in Philippine Power

Team Energy (formerly Crimson Holdings), the 50:50 joint venture of TEPCO-Marubeni, is one of the largest IPPs in the Philippines, with over 2,000MW of installed generating capacity, or 14% of the total. TeaM Energy owns and operates two coal-fired facilities (1,294MW Sual and 728MW Pagbilao) in Luzon, the northernmost and largest of the three island groups that constitute the Philippines, with ECA contracts expiring in 2024-2025. It also own a 20% stake in the 1,270- MW Ilijan natural gas-fired plant in Batangas. In June 2007, Japan Bank for International Cooperation (JBIC) provided a loan of up to US$2.7B and a political risk guarantee to Crimson Power to support its acquisition of Mirant’s assets (100% stake in Sual and Pagbilao, 20% equity in Ilijan). In 1993, Asian Development Bank (ADB) provided a package of US$40M loan and US$10M equity investment to Mirant Pagbilao Corp; other co-financiers included Japan Export Import Bank, US Export Import Bank.

IFIs Support to Private Power Players in Philippines

The Philippines is among the first country in the Asia-Pacific region to implement power sector restructuring, with loans and policy/ technical support and advice from international financial institutions (IFIs) like Asian Development Bank (ADB), World Bank-International Finance Corporation (WB-IFC) and Japan Bank for International Cooperation (JBIC). These reforms required the unbundling of state-owned National Power Corporation (NPC), an enabling legal and regulatory framework, and substantive privatization of NPC generation and transmission assets, with the aim to promote greater private sector participation and competition and ultimately bring down power rates. The IFIs also provided loans for the distribution and transmission sectors.

CBK Power (J-Power-Sumitomo) in Philippines

The CBK power complex in Laguna is operated by CBK Netherlands Holdings B.V. (CBKNH), a 50:50 joint venture of Electric Power Development (J-Power) and Sumitomo Corp. The J-Power-Sumitomo consortium acquired CBK from the joint venture of IMPSA (Argentina) and Edison Mission Energy (USA) in 2005; the Kalayaan Power Management Corp was responsible for operation and management. CNK rehabilitated all three plants, completed in 2004, and sold the electric power produced to NPC for a period of 25 years. Nearly half of the purchase price of 23B yen was covered by Japan Bank for International Cooperation (JBIC) and other Japanese banks, the first time that JBIC supported the acquisition of overseas IPP interests by a Japanese company on a project finance basis. In March 2005, JBIC provided a US$100M loan to CBKNH cofinanced with private financial institutions; JBIC also provided political risk coverage. This was the first JBIC project finance provided to support Japanese firms in the acquisition of a concession or operation of an existing IPP project in Asia.

KEPCO in Philippines

In June 2004, the Philippines signed a memorandum of understanding with the Korean Government to foster cooperation between two countries in the field of energy, to promote the development and initialization of clean coal technology. When Korea’s state-owned utility KEPCO set its sights from the domestic market to the world electricity market, the Philippines was the first stop with the acquisition of 650MW Malaya Thermal Plant in 1995. After the Malaya project, KEPCO bagged another contract in 1996 for the construction and operation of a 1,271MW Ilijan Gas Combined-Cycle which was the largest private power generation project in the country at the time, and completed in June 2002. KEPCO is now one of the 10 largest corporations in the Philippines, and is responsible for approximately 13% of the country's installed generation capacity. It operates Ilijan plant in Batangas through KEILCO (till 2010), and Malaya plant in Rizal through KEPHILCO (till 2022). In 2007, KEPCO acquired controlling interests in Salcon Power which operates the power plants in the Visayas.

PSI Asia-Pacific Electricity Forum (May 2009)

Public Services International (PSI) Asia Pacific Regional office hosted a Forum on ‘Electricity Reforms in Indonesia and Asia Pacific: Role of ADB/IFIs’ at Novotel Nusa Dua Hotel, Bali, Indonesia on the 2nd May 2009. Participants representing PSI electricity unions from Asia-Pacific joined the forum. Speakers from Philippines, Bangladesh, India & Indonesia shared their experiences on the impact of the reforms in the electricity sector vis-à-vis the role of the Asian Development Bank (ADB).

Philippine power privatization 8 years hence

Eight years after the enactment of EPIRA, there has been no effective solution to the problems, old and new, that beset the country’s power industry – e.g., electricity prices continue to soar making the cost of electricity among the highest in Asia; new middlemen, e.g, in guise of IPPAs, will further jack-up prices; NPC/government continues to provide guarantees to new players, e.g., guaranteed markets, fuel subsidies; crippling debt burden; a new era of ‘cross-ownership’ risking ‘sweetheart deals’ among distribution utilities and sister IPPs; ‘uncompetitive market behavior’ in the new electricity market; dismantling of NPC (now down to 20% of the national power grid); increasing exposure of Japanese, Korean, and Chinese state-run utilities in the strategic power sector; shift of power infrastructure financing from public to private sector; violations of trade union rights and unresolved labor issues and that threaten industrial peace and a stable electricity supply. Fundamentally, EPIRA simply transfers the monopoly privileges from the state to ‘unbundled’ interests, both domestic and foreign and not necessarily private, and thus allowing the ‘gains’ to be kept as excess (private) profits and a large percentage plowed overseas, instead of being shared with the consumers and taxpayers through lower electricity rates and a reduced debt burden.

Intl Power completes financing for Fujairah F2 IWPP

International Power completes financing for the Fujairah F2 IWPP, UAE (London – 18 December 2007) -- International Power plc is pleased to announce that, together with project partners the Abu Dhabi Water and Electricity Authority (ADWEA) and Marubeni Corporation of Japan, it has successfully completed the financing for the 2,000 MW, 130 MIGD Fujairah F2 IWPP in the UAE. The plant will be owned by the Fujairah Asia Power Company (FAPCO) in which International Power has a 20% equity interest, with 60% held by ADWEA and 20% by Marubeni. The facility will be operated by a 50:50 joint venture between International Power and Marubeni.

Analysis of Japanese Foreign Aid for Energy

This article evaluates Japanese foreign aid policy in light of the World Commission on Environment and Development’s concept of sustainable development by
focusing on Japanese official development assistance (ODA) to energy sectors in the global South. The analysis reported here finds two fundamental weaknesses in Japanese ODA policy on the energy sector: first, its premise of the compatibility of economic growth with environmental sustainability and, second, its heavy reliance

Japan-Indonesia energy deals

Indonesia and Japan sign energy deals - 21-08-07. To coincide with the signing of the economic partnership agreement (EPA) between Indonesia and Japan, firms from both countries have signed off on energy deals worth a total of $ 6.13 bn in value. Over half the agreements were made in a signing witnessed by President Susilo Bambang Yudhoyono and visiting Japanese Prime Minister Shinzo Abe, which saw a number of Indonesian and Japanese companies sign agreements on four energy projects worth $ 3.97 bn in total investment. One such project will see Japan's Mitsubishi carry out engineering, procurement and construction (EPC) of a 500 MW combined cycle power plant in Cilegon, West Java, to be built by state-run electricity company PLN. The project will cost around $ 345 mm.

Sumitomo to Expand Tanjung Jati B Coal Fired Power Plant (Indonesia)

Jan. 05, 2009 - Sumitomo Corporation has come to an agreement to expand the capacity of Tanjung Jati B Unit 1&2 Coal Fired Power Plant which is invested through SC's 100% subsidiary in Indonesia, PT. Central Java Power ("CJP"). Recently SC and CJP signed the financing contracts for the expansion, namely Tanjung Jati B Unit 3&4 Coal Fired Power Plant (hereafter referred to as "Expansion Plant").
The financing contracts are based on project financing, headed by Japan Bank for International Cooperation and co-financing lenders (Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation and BNP Paribas).

JBIC loan to rehab Paiton coal-fired & Saguling hydro plants (Indonesia)

Mar. 11, 2008 - Sumitomo Corporation signed the Contracts with Indonesia's PT.Plant, under the JBIC Credit Scheme. PLN (Persero) for Rehabilitation of SAGULING Hydro Electric Power Plant and PAITON Steam Power. Sumitomo Corporation (Head office: Chuo-ku, Tokyo, President: Susumu Kato) made the following contracts with PT. PLN (Persero), the state power firm in Indonesia:

1. Rehabilitation and Modernization of Saguling Hydro Electric Power Plant unit 1-4 < 4 x 178MW >
2. Rehabilitation of Paiton Steam Power Plant unit 1-2 < 2 x 400MW >

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