The total co-financing amount is approximately $3.4 billion, with export credit agency, Japan Bank for International Cooperation (JBIC), committing to lend $2 billion, and the remaining loan amount divided between nine other banks.29 According to Milbank, one of the advisers to the deal, JBIC has supplied a political risk guarantee for the debt portion by senior commercial lenders.31
Further, IFC has stated that the Indonesia Infrastructure Guarantee Fund (IIGF) and the government, acting through the Ministry of Finance, have provided a guarantee to the project to cover for payment defaults and termination payments under required buyout scenarios. All of these were being executed through a single guarantee agreement with recourse agreements to provide for reimbursement by PT PLN for claims made under the guarantee.30 Although the guarantee is only $33 million (less than a percent of the estimated total project cost), IIGF's involvement in the project provides for useful close scrutiny to the process, and this in turn improves the project's overall bankability.32