Chinese bank may finance Batam?s electricity project

Chinese company Dong Fang Electric Co Ltd, one of three companies qualified to bid for the construction of the steam power plant in Karang Asem, Batam, has proposed to raise funds from Industrial and Commerce Bank of China (ICBC) to finance the power project.

However, Bisnis Indonesia reported on Thursday that PT Pelayanan Listrik Nasional Batam (PLN Batam) questioned the readiness of the Chinese bank to finance the electricity project.

But Eri Ifyandri, the president director of PLN Batam, declined to comment about the company?s position related to the Chinese company?s plan to raise the loans from ICBC. ?We are now still focusing on the evaluation of finance, engineering, procurement and construction (EPC) capability of the three bidders,? he said.

Dong Fang is one of three companies, which have passed the pre-qualification to join the tender for the construction of the Karang Asem steam power plant. The other two bidders are Daelim Corporation Ltd of Korea and Mitsui and Co Ltd of Japan.

Their opportunities to win the project would much rely on their ability to secure credible and reliable loans to finance the projects,? he said. But he said that the company had yet to set the schedule when the winner would be announced. (*)