PP, Krakatau Steel to jointly build power plant

State owned construction company PT Pembangunan Perumahan (PP) and state owned steel producer PT Krakatau Steel (KS) will team up to build a power plant with total investment of about Rp 3.6 trillion (US$=Rp 9230).

PP?s president director Mushanif said in Jakarta on Tuesday that the power plant would supply the electricity needs of the state steel company. ?We are still discussing the purchase agreement with KS. We hope we can sign the agreement in September,? he added.

He did not mention the capacity of the power plant.

He said that about Rp 2.8 trillion of the Rp 3.6 trillion needed for the construction of the power plant would be provided by a syndication of three banks led by a state-owned bank. ?The remainders will be financed by the company?s own funds,? he added.

In September 2007 report, KS said its subsidiary PT. Krakatau Daya Listrik was planning to build a 320 ?MW coal-fired power plant in Cilegon, Banten province in 2008 but thus far the plan has not been realized yet.(*)