Leyand to build power plant in Pontianak

PT Leyand International Tbk, a publicly listed company engaged in power generation business, plans to build a power plant in Pontianak, West Kalimantan to meet the surging demand of electricity supply in the province, Kontan daily reported on Tuesday.

Electricity from the Coal-Fired Steam Power Plant-Independent Power Producer (CFSPP-IPP) with a capacity of 2 x 25 megawatt will be sold to state electricity company PLN.

?We won the tender to build the power plant in December 2011,? the company?s corporate secretary Indra Wilbarsyah said following an annual shareholders meeting in Jakarta on Monday.

He said that total investment for the power plant would reach US$100.8 million, about 70 percent of the total investment would be covered with bank loans and the other 30 percent with internal funds.

At present, the company is in the process of finalizing the financial closing for the loans. ?We hope in September, the financial closing can be completed so that the construction works can be started,? he added.

Indra said that the construction of the power plant would be commenced in the first quarter of next year at the latest, so that it could be completed in 2015. He estimated that the power plant would be able to generate revenues of about Rp 353.97 billion and net profits of Rp 47.57 billion a year after the power plant began operation in 2015.(*)