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Project Builds Trust, Confidence and Relationships with Financers

Project Builds Trust, Confidence and Relationships with Financers

Project Name
Banten IPP Power Project
Banten, West Java, Indonesia
PT Lestari Banten Energi (Genting Group)

Black & Veatch successfully addressed perceived shortcomings related to Chinese contractor performance and equipment during the development of a power plant in Banten, West Java, Indonesia.

Building a power plant from conception is a major and complex undertaking. It often requires many years of diligent planning and development as well as millions of dollars in capital finance.

The 670-megawatt coal-fired supercritical power plant in Banten, West Java, Indonesia, is no exception. The project will boost the growth of Banten’s industrial sector. It is the first example of an Indonesian independent power producer (IPP) development with global financing that did not require an Indonesian government guarantee.


Investor Confidence

The project is being delivered through Harbin Electric International Company Limited, a Chinese EPC contractor. As the owner’s engineer to PT Lestari Banten Energi (LBE), an operating division of Malaysia’s Genting Group, Black & Veatch helped garner investor confidence from day one.

By working closely with banks and other relevant parties to explain the technical and other parameters of the project, financial close was achieved on-schedule in 2013. This success sent a clear and positive signal that the financial markets were ready to accept alternative approaches to delivering major power projects in Indonesia, provided the right planning and preparations were in place. The project was also awarded the prestigious 2013 Asia Pacific Power Deal of the Year by Project Finance International.

Since the first concrete-pouring at the end of 2013, the project continues to perform to expectations. Black & Veatch continues to provide other owner’s engineer services to LBE as the project continues.


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