Allen & Overy has advised the sponsor consortium of PT Bhumi Jati Power on the project financing of the Tanjung Jati B coal-fired power plant Units 5&6 Expansion Project in Indonesia.

 PT Bhumi Jati Power, the project company, is a joint venture between Sumitomo Corporation, The Kansai Electric Power Company, Incorporated, and PT United Tractors Tbk.

The Tanjung Jati B coal-fired power plant in Indonesia's Central Jawa currently houses four power plant units with a total generation capacity of 2,640MW. The project involves the construction of two new high efficiency ultra-supercritical coal-fired power plant units, each with a generation capacity of 1,000 MW, in an area adjacent to the existing units. This is one of the largest coal-fired expansion projects in Asia and when construction is complete, Tanjung Jati B will be one of Asia's largest coal-fired power plants

Commenting on the deal, Tokyo-based partner Matthias Voss said: "We are delighted to have advised Sumitomo Corporation, The Kansai Electric Power Company, Incorporated. and PT United Tractors Tbk on such a significant project for Asia's energy industry. There were many complexities associated with the project financing and we drew on both local and international expertise within the Allen & Overy team to provide market-leading advice. We were able to take a unique approach to the power purchase agreement, for example, including the introduction of changes to the risk allocation introduced by Indonesia's state energy company."

The Allen & Overy team was led by Matthias Voss from Tokyo with support from Jakarta-based counsel Michael Tardif, and Tokyo-based Associates Akira Takahashi and Sung-soo Shin.

The project reached financial close on 31 March 2017 and the plant is scheduled to be operational by 2021.