Private power generators get $512 million loans<\/p>\n
BALI (JP): A consortium of 38 national banks will provide Rp
\n1.2 trillion (US$512 million) in 30-year loans to two private
\npower generating companies in North Sumatra and North Sulawesi
\nwhich are controlled by businessman Ibrahim Risjad.<\/p>\n
PT Tenaga Listrik Sibolga and PT Tenaga Listrik Amurang and
\nthe national bank syndicate signed the loan agreements at a
\nceremony here on Saturday which was also attended by Minister of
\nMines and Energy I.B. Sudjana and the governors of N. Sulawesi
\nand N. Sumatra.<\/p>\n
PT Tenaga Listrik Sibolga will build a coal-fired power plant
\nin N. Sumatra with an installed capacity of 200 megawatt and an
\ninvestment of Rp 987 billion and PT Tenaga Listrik Amurang a 110-
\nmegawatt plant in N. Sulawesi with an investment of Rp 609.3
\nbillion.<\/p>\n
\"This is the largest single loan syndication ever arranged by
\nnational banks,\" noted Rostian Sjamsudin, president of Bank
\nPanin, one of the eight lead arrangers and underwriters of the
\nloans.<\/p>\n
Sjamsudin said the other lead arrangers of the loan included
\nBank Central Asia, Bank Bali, state Bank Ekspor Impor Indonesia,
\nBank Universal, Bank Niaga, Bank International Indonesia and Bank
\nUmum Nasional.<\/p>\n
The loans, according to Sjamsudin, carry an annual interest of
\n20 percent.<\/p>\n
Risjad, who is also a close business associate of Sudono Salim
\nof the Salim group, said the financing facility proved the
\ncapability of national banks to finance such big projects as
\npower plants.<\/p>\n
\"So far financing of big projects has been dominated by
\nforeign banks,\" Risjad said.<\/p>\n
He added the two power projects will be constructed by Daelim
\nEngineering Co. of South Korea and will be operated by IVO, a
\nwell-experienced power company from Finland.<\/p>\n
The plant projects, slated to start operations in 1999, will
\nsell their power to the State Electricity Company (PLN) under a
\nlong-term purchasing agreement signed last May. (33\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/private-power-generators-get-512-million-loans-1447893297",
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