On February 25, Korea Eximbank (www.koreaexim.go.kr, CEO Dongsoo Kim) announced that the Bank will provide USD 238 million through project financing for the "Indonesia Cirebon Independent Power Project."

The "Indonesia Cirebon Independent Power Project" was initiated by the Indonesian government in order to address power shortage problems in the area of Java through private sector capital. This project involves construction and 30-year operation of a coal-fired power plant that can generate 660MW. The project is valued at USD 850 million.

Korean corporations will participate in the entire process of the project, from construction to the supply of fuel. Korea Midland Power Corporation will participate as the operator of the project, Samtan Co. Ltd will be responsible for the supply of coal, and Doosan Heavy Industries & Construction Co. Ltd will participate as the power plant exporter.

This project is the first independent power project in Indonesia since the Asian economic crisis in 1997. This project will play a great role in facilitating Korean businesses' participation in Indonesia's power plant projects, and will be a role model for many following projects afterwards.
By agreeing to support the "Indonesia Cirebon Independent Power Project" with USD 238 million, or 40% of the entire loan project amount, the Bank contributed greatly to forming the international financial package.

According to a Bank representative, "This project is expected to highly stimulate job creation in related industries as Korean companies have a substantial role in the construction and operation of the project. As such, this project will serve as a new model for overseas expansion of power projects."