Bosowa gets $140m loan from Chinese bank

Bosowa Corporation has secured a loan worth US$140 million from China Development Bank (CDB) to finance the development of a 2x100 MW coal fired power plant in Jeneponto, South Sulawesi.

Bosowa?s President Director Aksa Mahmud said the firm had approached CDB since last year for the loan. The Chinese bank recently agreed to provide the loan.

?The loan agreement will be signed in the near future,? he said. He refused to provide the terms of the agreement, saying he did not remember them.

State owned bank Bank Rakyat Indonesia has committed to providing a $60 million loan to finance the project which is estimated to cost a total of $200 million, Aksa said.

The power plant will be constructed by Bosowo?s subsidiary PT Bosowa Energy and the power will be supplied to the local cement industry.

Once it starts operation, the power plant will need 1.2 million tons of coal per year. Bosowa is holding talks with PT Adaro Indonesia and PT Arutmin Indonesia to supply the coal, Aksa said. (Bernard)