Toba prefers local banks to finance N. Sulawesi power project

By Thomas Sembiring

Petromindo|Dasir

IDX-listed coal mining firm PT Toba Bara Sejahtra Tbk said that a number of domestic banks have expressed interest in providing funding for its planned 2x50 MW PLTU Sulut-3 coal-fired power plant project in Minahasa Regency, North Sulawesi Province.

Toba Director Pandu Syahrir told Petromindo.com on Monday, however, that the project?s funding plan will also depend on the preference of its partner in the project, Sinohydro Corp Ltd.

?This will depend on our partner. Most which have expressed interest (in providing financing) are local banks,? he said.

Pandu said that Toba prefers domestic banks to provide the funding as they?re now willing to make long-term loan with increasingly competitive interest rate.

Toba plans to develop the estimated US$200 million power plant project through to PT Minahasa Cahaya Lestari, which is 90 percent owned by PT Toba Bara Energi and 10 percent by Sinohydro Corp Ltd. The company signed the power purchase agreement (PPA) for the project with state-owned electricity firm PT PLN in April of this year.

Toba earlier said that financial close of the project is expected next year.

The power plant will get coal supply from Toba Bara at a volume of 600,000-650,000 tons per year, with CV of 3,800-4,400 kcal/kg.

Editing by Reiner Simanjuntak