PTBA to get US$250m loan to build mine-mouth power plant

Four local banks have agreed to provide a loan of US$250 million to state coal mining company PT Tambang Batubara Bukit Asam (PTBA) to build the Banjarsari 2x100MW mine mouth power plant in South Sumatra.

Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia - all state banks -- and a bank owned by the South Sumatra provincial administration are to sign the credit agreement next week, Bank Mandiri Vice President Mulyono said as quoted by Antara news agency.

Last month, PTBA announced that its power plant firm unit PT Bukit Pembangkit Innovative (BPI) has appointed Chinese firm Jiangxi Electric Power Overseas Engineering Co. as EPC contractor to build the mine-mouth power plant.

The project is expected to be completed in 30 months. The company expects construction to start this year with completion seen in 2010.

Electricity from the proposed power plant would be connected to Sumatra distribution network and sold to PLN at US$3.78 cents per kwh.

PTBA will supply 1.15 million tons per annum of coal for the power plant.

The firm has 41 percent shares in BPI with PT Navigat Innovative Indonesia and PLN?s subsidiary PT Pembangkit Jawa-Bali having 39 percent and 20 percent, respectively. (*)