Press Release

Subsidiary of PT Bukit Asam Tbk (PTBA), PT Huadian Bukit Asam Power (HBAP) along with China Export Import (CEXIM) Bank signed a Loan Facility Agreement to finance the construction of PLTU Sumsel -8 with capacity 2x620 MW on Wednesday (23/5) in Jakarta. The signing was done by Geng Kecheng, President Director of PT HBAP and Xu Li, Vice President of CEXIM Bank. The signing of Loan Facility Agreement, CEXIM Bank will provide a loan of 75% of the total project cost or USD 1.26 billion. While the remaining total project cost of USD 420 million will be funded by shareholders which is 45% by PTBA and 55% by China Huadian Hongkong Company Ltd. Previously, on October 19, 2017 has been signed amendment Power Purchase Agreement (PPA) PLTU Sumsel -8 between HBAP with PT PLN (Persero). Mine Mouth Power Plant Sumsel – 8 is part of government program to build 35.000 MW steam power plant. PLTU Mine Mouth Power Plant Sumsel – 8 will build by HBAP as Independent Power Producer (IPP) which is a consortium of PTBA and China Huadian Hongkong Company Ltd. HBAP will also build a transmission line from PLTU Sumsel -8 to PLN’s main substansion in Muara Enim as far as 45 km. Electricity from PLTU Sumsel – 8 will be supplied to Sumatera Grid using transmission line of High Speed Extra High Voltage 500 KV. The construction of Mine Mouth Power Plant Sumsel – 8 expected to start at the beginning of Q3 in 2018, with construction period of 42 months for Unit I and 45 months for Unit II. Thus, it is expected to achieve Commercial Operation Date (COD) in 2021 for Unit I and 2022 for Unit II.