Chinese bank to provide $500m for PTBA?s coal transportation project

China Development Bank has agreed to provide project financing of about US$500 million for state-owned coal miner PT Tambang Batubara Bukit Asam?s integrated railway-waterway and deep sea coal terminal project in South Sumatra.

According to an industry source familiar with the deal, a Principal Agreement for the project financing will be signed in China on Thursday (tomorrow) and will be witnessed by President Susilo Bambang Yudhoyono and Chinese President Hu Jintao.

Meanwhile, another industry source said Tuesday the project is about the construction of an 84-kilometer railway, a 28 km navigation canal, and a deep sea coal terminal in Tanjung Kelian, West Bangka.

The project will enable PTBA to deliver up to 20 million tons of coal annually from its coal mine in Tanjung Enim. Total distance from the mine to Bangka?s coal terminal is 322 km.

The project will be developed by Chinese CITIC Construction Corp-led consortium together with Indonesia consortium led by PT Trimitra Adiyasa and Sinar Mas Group. (godang/robert)