PLN board OKs $60M Sarulla sale

PLN board OKs $60M Sarulla sale

SINGAPORE: Indonesia's national power company Perusahaan
Listrik Negara, or PLN, is poised to "within days" sign a US$60
million deal with Unocal Corp. for the take over of the Sarulla
geothermal power project in North Sumatra, said PLN Finance
director Parno Isworo Wednesday.

The conclusion of the Sarulla deal, originally scheduled for
September, was delayed pending approval from PLN shareholders,
which came through last week on Oct. 8, said Parno.

By mid-November, after the official transfer of Sarulla's
ownership title, PLN will pay Unocal $60 million, he added.

But what PLN intends to do with Sarulla, also the first
geothermal project to be launched in North Sumatra, remains
unclear, Parno said.

There are three options: PLN could resell Sarulla to a third-
party, offer its stake in the geothermal field to a company
already engaged in oil, gas or steam exploration and production,
and operate the power plant, or form a joint-venture company to
advance the Sarulla project.

The current steam production capacity at Sarulla, where Unocal
had already drilled wells, can support the construction of a 65
megawatt power generating unit, Parno said. -- Dow Jones

;JP;
ANPAf..r..
Brief-Moody's-review
Moody's reviews Mandiri, BRI ratings
JP/14/Brief

Moody's reviews Mandiri, BRI ratings

JAKARTA: Moody's announced on Wednesday that it had placed the
bank financial strength ratings (BFSR) of Bank Mandiri and Bank
Rakyat Indonesia on review for a possible upgrade.

The BFSR of Bank Mandiri is E and Bank Rakyat Indonesia (BRI),
E+. The credit ratings of both banks are unaffected.

For both banks, the review will consider improvements in their
financial fundamentals, particularly in the areas of
profitability, asset quality and capital, the rating agency said
in a press statement.

In addition, the review will consider their managements'
abilities to develop and sustain their franchise values, as well
as longer term prospects in the changing banking system.

Bank Mandiri is the largest bank in the Indonesian banking
system, controlling about a quarter of system deposits. It was
established in 1998 during the economic crisis through the merger
of four state-owned banks.

Founded in 1895, BRI is the fourth largest bank. Its primary
role is to promote the country's microfinance sector. The bank is
100 percent owned by the government, which is expected to
maintain a majority stake in the foreseeable future, despite
privatization plans. -- JP

;AFP;
ANPAf..u..
Brief-HK-airline-China
Cathay gets license to fly to Beijing
JP/HONGKONG

Cathay gets license to fly to Beijing

HONG KONG: Hong Kong's Cathay Pacific Airways Ltd. on Wednesday
said it has received a license from the Civil Aviation
Administration of China allowing it to fly to Beijing.

Cathay Pacific is finalising the detailed flight arrangements
with Beijing Capital International Airport Co. Ltd., a process
which will determine exactly when it can start flying to the
capital, a spokeswoman for the airline said.

She said Cathay initially plans three flights a week to
Beijing but the schedule will depend on demand.

Press reports have said the airline will start flying to
Beijing in early December.

In April, the airline was granted the right by Hong Kong's Air
Transport Licensing Authority (ATLA) to resume services to
Beijing, Shanghai and Xiamen for the first time since 1990.

Cathay Pacific's application to ATLA was opposed by rival
Dragonair, which was the only Hong Kong based airline with rights
to fly scheduled passenger services to China.

Dragonair is 43.29 percent owned by China National Aviation
while Cathay Pacific has a 19 percent stake.