Dayaindo to build coal terminal in cooperation with Chinese firm
Monday, July 26 2010 - 02:20 AM WIB
Dayaindo?s corporate secretary Endang Wijaya said in Jakarta recently that the two companies were still finalizing the cooperation scheme for the construction of the coal terminal.
She said that the coal terminal which would be named Belang Belang Coal Terminal (BBCT) would have a receiving capacity of about 30 million tons a year. ?The construction cost will reach about US$150 million or about Rp 1.39 trillion,? she added.
According to her, the Chinese company had agreed to provide about $127.5 million in funds to finance the construction of the terminal, while Dayaindo would provide $22.5 million. The Chinese company also demanded a standby letters of credit as guarantee it will receive a part of revenues from the operation of the coal terminal, she added.
?Dayaindo is still studying the proposal,? Endang said.
Dayaindo earlier reported that it planned to issue rights shares to raise funds amounting to Rp 1.98 trillion to partly finance its expansion. About Rp 610 billion would be allocated for the terminal, the company said. (*)