CNKO secures loan to finance five power projects

PT Exploitasi Energi Indonesia Tbk (CNKO) has secured loans worth about US$1.6 billion from a number of local and foreign banks to finance the construction of the company?s five coal-fired power plant projects, Investor Daily reported on Monday.

CNKO?s President Director Henry H. Sitanggang said in Jakarta last week that the loans would be part of the funds to be used to finance the construction of five power plants, which would include PLTU Pangkalan Bun in Central Kalimantan. The construction of PLTU Pangkalan Bun which would have capacity of 100 megawatt (MW) would be begun next year, he said. In addition, the company would also build two coal-fired power plants with capacity of 2 x 7 MW each in eastern Indonesia.

?At present, the company is building coal-fired power plants each with capacity of 2 x 7 MW in Rengat and Tembilahan, Riau,? he said, adding that the five power plants which would have combined capacity of 160 MW would require investment of about US$1.6 billion.

The five power plants were expected to begin commercial operation in 2014, he said, adding that the electricity from the power plants would be sold to state electricity company PLN under a 25-year contract . The company expects total revenues of about Rp 1.5 trillion from the five power plants.

Henry said earlier that CNKO was also considering to build a coal-fired power plant with capacity of 2 x 30 MW in South Sumatra. The company will team up with Huadian Power International Corporation Limited of China and a local company to build the power plant. (*)