Local banks to issue L/Cs for PLN?s power plant projects

Five banks will issue letter of credits (L/Cs) worth US$500 million to support state electricity company PT Perusahaan Listrik Negara's (PLN) plan to build coal-fired power plants in Rembang, Pacitan and Pelabuhan Ratu, Kontan Daily reported Tuesday.

 

The five banks include Bank Rakyat Indonesia (BRI), Bank BNI, Bank Mandiri and Bank Bukopin.

 

BRI’s Director for General Business Affairs Sudaryanto Sudargo confimed the pllaned issuance of LCs on the name PLN, saying “ BRI will issue a L/C worth US$117 million in October 2007".

 

According to Sudaryanto, the L/C with a transaction period of between three and six months is interest free but is subject to fee payment (fee-based income) of between 0.5 percent and 1 percent.

 

Earlier, state-owned Bank Mandiri said it would allocate a loan of about Rp 3 trillion this year to partly finance the construction of PLN's power plants.

 

The Rembang 2x 315MW coal-fired power plant in Central Java has started construction. The power plant is being built by the consortium of Zeland Holding Bhd and PT Priamanaya Djan International.

 

The 2x315 MW Pacitan power plant in East Java has also started the construction with the Dong Fang Electric Corporation-Dalle Energy consortium as the EPC contractor.

 

The construction of 3x350 MW Pelabuhan Ratu power plant in West Java has also begun. The plant is being built by the consortium of Shanghai Electric Group Co. Ltd and Maxima Infrastruktur. (*)