Jababeka to get $108 million loan to build 130-MW power plant

Indonesian Stock Exchange-listed firm PT Kawasan Industri Jababeka is in final talks with a number of banks to raise about US$108 million in syndicated loan to build a gas-fired power plant with a capacity of 130 megawatt (MW) in its industrial estate area in Cikarang, West Java.

The company's vice president director Budianto Liman said in Jakarta Wednesday as quoted by Kontan Daily as saying that the company expected the syndicated loan from between five and six banks could be disbursed in February, next year.

He said that the syndicated loan would be partly used to finance the bridging loans of about US$88 million provided by Indonesia?s Bank Niaga and CIMB Bank of Malaysia, and to provide the other financial needs of the power plant project.

According to him, the bridging loan with a maturity of six months and with interest rate of Singapore offered rates (Sibor) plus 2.7 percent was raised to settle upfront payment for the power plant project.

"We have to raise bridging loans because the negotiations to get the syndicated loans have lasted longer than expected," he said, adding that some parts of the syndicated loan would be also used to finance the company's capital expenditure for 2008.

Earlier, The company's corporate secretary Muljadi Suganda said that the loans would account for about 70 percent of the total funds needed for the power project.

?The company has got the license. So the construction of the power plant could start later this year. The construction of the power plant is expected to be completed in 2009,? he said in July 2007. (*)