Terregra seeks bank loans for power plant projects

IDX-listed power company PT Terregra Asia Energy is seeking bank loans to help finance its four hydro power plant projects in North Sumatra.

Vice President Director of Terregra, Lasman Citra said on Tuesday that the company will require total investment of US$70 million-$90 million for the planned four power plant projects with combined capacity of 36 MW.

He said that about 70 percent of the financing requirement is expected to come from banks both local and overseas.

Terregra, which recently completed its initial public offering, raising Rp 110 billion in proceeds, has also been in talks with three companies including a major multinational firm to become strategic partner in the planned projects, Lasman said, but declined to disclose their names. He, however, said that Terregra intends to become majority owner in the four hydro power plant projects, which are expected to start construction this year and hopefully can be completed in 2019.

The power plant projects will be developed by its subsidiary PT Terregra Hydro Power (THP), which in turn has four subsidiaries PT Sumber Alam Energi Hidro, PT Berkah Alam Energi Lestari, and PT Energi Alam Sentosa.

Terregra, which previously engaged in the supply of power plant spare parts and provision of technical services, also has set up another subsidiary called PT Terregra Solar Power, which will be engaged in the development of solar power plant projects in the future particularly in the eastern part of Indonesia.

Lasman said last month that Terregra Asia aims to build a total of 12 renewable-based power plant projects in Sumatra and eastern part of Indonesia with combined capacity 450 MW. (*)