DSSA in talks to get loan for power plant project

IDX-listed energy and infrastructure company PT Dian Swastatika Santosa Tbk (DSSA) is negotiating with a Chinese bank to provide loans worth US$320 million for the construction of a coal-fired power plant in South Sumatra, Kontan daily reported on Tuesday.

Hermawan Tarjono, DSSA?s director said in Jakarta on Monday that the total loans would account for about 75 percent of the total investment for the PLTU Sumatra 5 mine-mouth power plant which would have capacity of 2 x 150 megawatt.

He was optimistic that DSSA would secure the loan approval before the end of the deadline set by state electricity company PLN at the end of November. DSSA will operate as an independent power producer in project and will sell the electricity to PLN.

DSSA has earlier named Chinese company China National Electronic Engineering Co. Ltd (CNEE) and Herbin Power System Engineering and Research Instiute Co,, Ltd as the contractors for the engineering, procurement and construction (EPC) of the power plant.

About 70 percent of the US$300 million contract will be allocated for machines and machinery equipment, and the other 30 percent for design and construction services. (*)