Chinese bank ready to finance $560 million for two Indonesian power plants
Monday, January 5 2004 - 02:53 AM WIB
PT Indonesia Power?s director of trade and development Djuwarno said both the projects will possibly get the funds from China and the construction of the plants, hopefully, will begin soon.
Djuwarno didn?t disclose the name of the Chinese bank.
Indonesia Power is a unit of state electricity firm PT Perusahaan Listrik Negara (PLN).
?Both the projects are at the mining edge in southern Sumatra and Riau. Tarahan power plant (the construction) will begin this August and Peranap in the beginning of 2005,? Djuwarno told Bisnis recently.
Currently, the negotiations are still going on with the Chinese bank regarding its financial commitment for the two power plants, he said.
So far, the bank has already agreed in principle to give $400 million-loan for Peranap and $160 million for Tarahan plants, he said adding the negotiations, hopefully will not be longer so that the next steps will be taken.
Peranap is located in Riau and Tarahan in Lampung provinces.
As far as the projects are concerned, the physical preparations have been made for the power plants. Even tenders for the construction were called for Tarahan plant, he continued.
In case of Peranap, a feasible study regarding its capacity from the economical point of view is underway and it will be expected to finish this month.
Djuwarno said his company wants state coal producer PT Tambang Batubara Bukit Asam (PTBA) as partner with 60:40 ownership. (*)