PROJECT FINANCING STRATEGY TROUGH OPTIMIZING THE CLEAN DEVELOPMENT MECHANISME (CDM) CONTRIBUTION (Case Study: PLTG METHANE JAMBI)

• Main Author: SETIAWAN SYAFRUDIN (NIM: 29106063) , IVAN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/12275
• Institution: Institut Teknologi Bandung

PT. S is a joint venture company which is formed by PT.M and PT. N. PT. S field of expertise is in constracting power plant. The project that the company will do is constructing 2 MW power plant using Palm Oil Mills Effluent (POME). This POME will produce biogass and boiomass that can generate electricity.<p>This project will be constructed in PT.Bukit Kausar owned Palm Oil Plantation that situated in Jambi Province. Total investment for this project is Rp. 36.653.500.000,00 with financing scheme 30:70 ratio, 30% equity and 70% loan. This project have potenlial electricity generation up to 9.600.000 KWH per year. From that total electricity about 900.000 KWH per year will be distributed to the palm oil plantation for own consumtion, the rest 8.700.000 KWH will be sold to PLN trough IPP contract at Rp.557,00 per KWH. Other potential that this project have is the ability to reduce carbon emission up to 70.953 ton per year and make this project eligible to proposed CDM and can earned additional revenue Rp.11.998.507.065,00 per year.<p>To run this project, PT.MKE uses 3 strategies. And from all 3 strategies according to the result this project will only feasible financially using the 3rd strategy that using a higher rate of electricity in the first 10 years of contract which is Rp.1.114,00 and 10 years later is free and using CER contract to boost up the revenue so the company will have faster pay back period.<p>Using Capital Budgeting Method as a tool for feasibility study resulted that the project is feasible and very promising, the NPV rate in this project is Rp. 14.537.202.262,89, with IRR,ROI, and ROE as follows, 22,73%, 15,56%, 36,27%. Payback period is less than 5 year or 4 year 11 days. To strengthen the financing scheme, basic business profitability shows the project is Go Leverage which means it is okay for the company use 70% loan to finance the project and still feasible.<p>To generate fresh money to finance the equity the company will use advance payment from the CER promoter as a part from the deal and agreement in bridging financing scheme. The compensation for the promoter is they will have larger portion of fee from the CER contract than they usually have in common condition or just profit sharing. With this financing scheme PT.MKE will use very less money in this project yet it is still profitable and feasible for the next 10 years. <br />