DSSA secures loan commitment for PLTU Sumsel 5 power plant

PT Dian Swastatika Sentoas Tbk (DSSA) has secured a commitment from a Chinese bank to provide loan worth US$320 million to finance the construction a coal-fired power plant in South Sumatra, Kontan reported on Friday.

Hermawan Tarjo, one of DSSA directors, said that he hoped the loan agreement could be signed in the middle of December. But he did not unveil the name of the Chinese lender.

The loan will cover about 75 percent of the investment requirement for the construction of PLTU Sumatra Selatan (Sumsel) 5 mine-mouth power plant which would have a capacity of 2 x 150 megawatt.

As an independent power producer, DSSA has signed power purchase agreement with state electricity company PLN, which would buy the electricity from PLTU Sumsel 5.

DSSA had been in difficulty to find a lender for the project. PLN had given the company the time until November to secure loans.

Chinese companies China National Electric Engineering Co Ltd and Herbin Power System Engineering and Research Institute Co Ltd have won a contract worth US$300 million to carry out engineering, procurement and construction (EPC) works of the power plant. (*)