DBS past coal projects

From Market Forces’ review of loans provided by DBS on IJGlobal, a internationally-recognised financial journal, from January 2012 to December 2017, DBS provided US$885 million to 12 coal infrastructure projects, including power, mining and ports. 

Target Debt (US$ million) Country Year
Port of Newcastle Acquisition $160 Australia 2014
Central Java Coal-Fired Power Plant (2000MW) PPP $140 Indonesia 2016
Port of Newcastle Refinancing $123 Australia 2015
Paiton Energy Refinancing $81 Indonesia 2017
Worsley Co-Generation Plant Refinancing $77 Australia 2014
KalSel Coal Plant (200MW) IPP $67 Indonesia 2017
Harum Energy Refinancing $54 Indonesia 2012
Centennial Coal Corporate Refinancing $319 Australia 2014
Central Java IPP Bridge Facility (2000MW) $45 Indonesia 2012
Limay Coal-Fired Power Plant Phase 1 (300MW) $44 Philippines 2015
Millmerran Coal-Fired Power Plant Refinancing $31 Australia 2015
Gujarat NRE Coking Coal Mine Capex facility $18 India 2013
Total $885
Paiton power complex

Paiton complex (2015)

One of the more recent loans was provided to Paiton Energy, to refinance a loan provided on construction of Paiton 3. The loan totalled US$750 million. DBS also acted as a joint bookrunner in assisting to refinance the power station, facilitating the issue of bonds worth US$2 billion.

The Paiton coal fired power complex has been reported to have produced 153 million tonnes, or over 80%, of the annual total of Hazardous and Toxic B3 waste of any facility in East Java, Indonesia. According to the Indonesian government, B3 waste is “any waste containing dangerous and/or toxic material, which due to its characteristics and/or concentration and/or amount, either directly or indirectly, may damage and/or pollute the living environment and/or endanger human health.” Although much of this waste is reported to be used to manufacture cement, the rest is stockpiled.

Central java project

The 1,900 MW Central Java Power Project has also been contentious. According to Greenpeace Indonesia, the coal project is being built “on 226 hectares of productive agricultural land, and within the Ujungnegoro-Roban Marine Conservation Area which is rich in fish and coral reefs that support livelihoods for ​​fishermen from various regions on the north coast of Java.”

Local communities protested the coal-fired power station for over five years, seeking to prevent the impact on the fisheries and agricultural land. They brought legal actions, complained to administrative tribunals and even went to Japan to protest. The video above shows local community members blockading the construction site in March 2017 to save their livelihoods. The power station reached financial close in 2016.

Direct Action at Batang Coal Power Plant Project in Indonesia – News Access (English with Subs) (2017) © Greenpeace

Vinh Tan 4

DBS has been linked as a lender to the Vinh Tan 4 power station, which is a part of the Vinh Tan complex in the Vĩnh Tân commune, Tuy Phong district, Bình Thuận province, Vietnam. The total capacity of this power complex is 6,224MW. This power complex has been highly controversial.

  • Vinh Tan-2: This plant has been operational since 2014. Owing to the arid climate and high winds in the area, coal ash from the plant has affected air quality.  Many villagers, especially children, have reported respiratory illness and leaks have caused damage to farms. Coolant water from the plant discharged into the sea at high temperature has caused the fish population to decline, affecting the incomes of families dependent on fishing. The station has also affected other local businesses reliant on air and water quality including salt production and shrimp farming, which are significant industries in the province.  In April 2015, responding to this serious pollution caused by the plant, hundreds of people in Vĩnh Tân Commune took to the streets, blocking the national highway for two days to prevent trucks from transporting coal slag to the cinder dump.
  • Vinh Tan-1:  dredging to create a channel for waste transportation has caused significant concern because it would harm Hòn Cau Marine Protected Area and affect marine resources. The video below details these threats.

CHANGE Vietnam, Documentary: Hon Cau MPA under threats from coal power (2017)