International Power PLC (IPR.LN) said Monday it has agreed financing for the 815-megawatt coal-fired power plant it intends to build in Indonesia.

The Japan Bank for International Cooperation will provide direct loans totaling $729 million and nine commercial banks will lend $486 million to the PT Paiton Energy consortium. The remainder of the $1.52 billion project will be funded with equity from International Power and its consortium partners Mitsui & Co. Ltd. (MITSY), Tokyo Electric Power Co. Inc. (9501.TO) and and local Indonesian company PT BHP.

International Power has a 40.5% interest in the project and will invest $123 million of equity.

The Paiton power plant is expected to be fully operational in 2012 and has a 30-year power purchase agreement with the Indonesian state utility Persero.

"Paiton 3 will add to our long-term contracted earnings stream and demonstrates our ability to realize additional value from existing sites," said Philip Cox, Chief Executive of International Power.

At 1254 GMT International Power shares were up 1.0%, or 3 pence, at 328p.

 
   -By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com
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