PTBA plans to raise $703 million for two power plants

State-owned coal producer PT Tambang Batubara Bukit Asam Tbk (PTBA) is trying to raise US$703 million for the financing of two coal-fired power plants in Banjarsari, South Sumatra and Pranap, Riau, the Bisnis Indonesia newspaper reported in its Wednesday edition.

PTBA president director Ismet Harmaini said 30 percent of the total cost will be funded through equity and the remaining 70 percent will be through other alternative sources of funding.

“Other funding (sources) will include in the form of joint ventures, loans and bonds. But we have not yet decided about the funding,” Ismet told reporters after the end of company’s the annual general shareholders meeting on Tuesday in Jakarta.

Banjarsari power plant, according to Ismet, will have 2x100 megawatt (MW) capacity after its completion. This plant will be jointly built by PT Indonesia Power and other private companies.

The plant, in which PTBA will have 24%, Indonesia Power 51 percent and other private firms 25 percent ownership, would need $203 million investment.

Moreover, PTBA has an opportunity to supply 1 million tons of coal per year.

Where as the Pranap plant will have 2x250 MW capacity. PTBA will cooperate with Indonesia Power and Riau provincial administration to build this coal-fired plant.

Ismet said Banjarsari plant will most probably be finished in 2008 and Pranap in 2009. (*)