Paiton looks for underwriters

Paiton looks for underwriters

JAKARTA (JP): PT Paiton Energy Company, a Japanese-American-
Indonesian consortium awarded a contract to set up two power
units in Paiton, East Java, has appointed Chase Manhattan Bank
N.A. of the United States and Industrial Bank of Japan to
coordinate loans for its project.

Paiton Energy will establish two coal-fired units, with a
combined capacity of 1,230 megawatts, under build-own-and-operate
based contract with the government.

The State Electricity Company has operated two units at the
Paiton power station with a combined capacity of 800 MW.

A spokesman for Paiton Energy said here yesterday that the
consortium, sponsored by Mission Energy Company and General
Electric Capital Corporation, both of the United States, Mitsui
Co. Ltd. of Japan and PT Batu Hitam Perkasa of Indonesia, needs
underwriters to finance the US$2.3 billion electricity generating
units.

The loans, to be generated by the banks, will be used to
finance the construction, start-up and operation of the two
units.

The spokesman said Paiton Energy has also appointed six other
financial institutions -- BA Asia Limited, Barclay Bank PLC,
Credit Lyonnais, Fuji Bank Limited, Sakura Bank Limited and Union
Bank of Switzerland -- to lead arrangements to find underwriters.
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