PT PP secures a contract to build a gas-fired power plant

State owned property company PT PP Tbk has secured a contract from state electricity company PLN to build a gas-fired power plant in Jambi, Kontan reported on Wednesday.

The company?s president director Muhsyanif said in Jakarta on Tuesday that the Rp 900 billion-power plant would be built under a build, operate and transfer (BOT) contract for seven years.

?It means that after operating the power plant for seven years, the plant will be transferred to PLN,? he added. According to him, the company would use internal funds and bank loans to finance the construction of the power plant.

Muhsyanif said that PT PP raised about Rp 581.84 billion from the sales of the company?s shares during an initial public offering in February, this year. About Rp 200.17 billion of the IPO proceeds had been used for working capital and for the establishment of a joint venture as of October.

He said the remaining funds would be used to partly finance the construction of the power plant and to increase capital. (*)