PLN signs Rp 4.4t loan agreement to finance 5 power projects
Friday, January 30 2009 - 02:45 AM WIB
The firm signed a syndicated loan agreement worth Rp 1.155 trillion with state owned banks Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) to finance the development of the 2x350 megawatt (MW) Jatim 3, Tanjung Awar-Awar power plant in East Java. The money will be used to finance the rupiah cost of the project.
The firm also signed a loan agreement worth Rp 1.151 trillion with a syndicate of seven local banks to finance the development of four coal-fired power plants, that is the 2x50 MW Sulawesi Selatan power plant; the 2x30 Bangka Belitung 3 power plant; the 2x10 MW Papua 2 power plant; the 2x65 MW Kalimantan Selatan power plant. The syndicated banks are BRI and six banks respectively owned by the regional governments of Jakarta, Papua, South Sulawesi, South Kalimantan, South Sumatra and North Sumatra. The money will be used to finance the rupiah cost of the projects.
PLN also signed a syndicated loan agreement worth Rp 2.1 trillion equivalent to US$172.9 million with BRI and BNI to finance the Sulawesi Selatan, Bangka Belitung 3, Papua 2, Kalimantan Selatan power plants. The money will be used to finance the dollar cost of the projects.
The power plants are part of the government's Phase One 10,000 MW fast track power program.
Credits that PLN will receive under the agreements singed on Friday total Rp 4.4 trilion. The sum accounts for 85 percent of the EPC costs of each project. The remaining 15 percent will be covered by PLN using its internal resources.
The loans have a tenor of ten years with a grace period of three years and a floating rate based on JIBOR. (Bernard )