Focus our attention on solutions to solve issues
Junji Omura, a financing manager at CJP said, “Even without being expressed in words, the passion and determination of leaders and colleagues not to give up until achieving the goal becomes contagious and permeates throughout the organization”
Subsequently, CJP concluded a loan agreement for the expansion project. The company began to negotiate with banks around March 2007, but again faced many difficulties. The loan agreement adopted a financing technique called “project finance,” where the relevant project itself is used as collateral. In other words, the loan provided is paid back exclusively using revenues generated from the project. The lending banks, led by Japan Bank for International Cooperation (JBIC), proposed severe terms and conditions for the loan, partly due to a combination of other factors such as the loan agreement for TJB Units 1 and 2.
“Negotiations require a patient and steady effort. At the end of the day, it is not a winning technique that enables you to close a deal—but your passion and genuine desire to help the country develop,” said Junji Omura, a financing manager at CJP. With that in mind, his team was united to proceed with the negotiations. As a result, they were able to enter into a loan agreement on December 25, 2008, as scheduled. “That was the best Christmas present for my team members as well as myself,” recalled Mr. Omura.
For the Sumitomo Corporation Group, closing the loan agreement did not mean that it was time to sit back and relax. Under the loan agreement and the finance lease contract, more than 20 milestone requirements were stipulated. Failure to meet any of those contractual requirements by their respective due dates may have led to the termination of the entire loan agreement. Among the milestones, selection of a company to operate and maintain the additional power generation units was the biggest challenge, and was accomplished at the very last minute.
Steadily achieving all the milestones one by one led to the successful completion of the project—three months earlier than scheduled.
Looking back, Mr. Yoshida remarked, “In the course of the TJB project, I faced several serious challenges that almost overwhelmed me. But it never occurred to me even once that we may not be able to complete the project. Why? Because once you understand the significance of the project for Indonesia, you fully understand that cancelling the project is not an option. Every time we faced difficulties, we did nothing but focus on finding a solution.”