PI-Energi obtains $63.5m loan for power plant project

Power company PT Pupuk Indonesia Energi (PI-Energi), a subsidiary of state-owned fertilizer firm PT Pupuk Indonesia, obtained a US$63.5 million loan from PT Bank Sumitormo Mitsui Indonesia, Antara reported.

The lending agreement was signed on Wednesday. PI-Energi President Director Tentaminarto said that the eight-year loan will be used to help finance the development of the 22 MW gas cogeneration power plant in Gresik, East Java.

The power plant, whose construction started in February of this year and is targeted to be completed in September 2017, will supply electricity and steam for a nearby ammonia-urea plant, being developed by state-owned fertilizer firm PT Petrokimia Gresik.

PI-Energi is 50 percent owned by PT Pupuk Indonesia, while Petrokimia Gresik owns 10 percent stake, and the remainders are held by other state fertilizer firms including PT Pupuk Sriwidjaja Palembang (10%), PT Pupuk Kalimantna Timur (10%), PT Pupuk Kujang (5%), PT Pupuk Iskandar Muda (5%), and state-owned engineering firm PT Rekayasa Industri (1%). (*)