Private power generators get $512 million loans

BALI (JP): A consortium of 38 national banks will provide Rp 1.2 trillion (US$512 million) in 30-year loans to two private power generating companies in North Sumatra and North Sulawesi which are controlled by businessman Ibrahim Risjad.

PT Tenaga Listrik Sibolga and PT Tenaga Listrik Amurang and the national bank syndicate signed the loan agreements at a ceremony here on Saturday which was also attended by Minister of Mines and Energy I.B. Sudjana and the governors of N. Sulawesi and N. Sumatra.

PT Tenaga Listrik Sibolga will build a coal-fired power plant in N. Sumatra with an installed capacity of 200 megawatt and an investment of Rp 987 billion and PT Tenaga Listrik Amurang a 110- megawatt plant in N. Sulawesi with an investment of Rp 609.3 billion.

"This is the largest single loan syndication ever arranged by national banks," noted Rostian Sjamsudin, president of Bank Panin, one of the eight lead arrangers and underwriters of the loans.

Sjamsudin said the other lead arrangers of the loan included Bank Central Asia, Bank Bali, state Bank Ekspor Impor Indonesia, Bank Universal, Bank Niaga, Bank International Indonesia and Bank Umum Nasional.

The loans, according to Sjamsudin, carry an annual interest of 20 percent.

Risjad, who is also a close business associate of Sudono Salim of the Salim group, said the financing facility proved the capability of national banks to finance such big projects as power plants.

"So far financing of big projects has been dominated by foreign banks," Risjad said.

He added the two power projects will be constructed by Daelim Engineering Co. of South Korea and will be operated by IVO, a well-experienced power company from Finland.

The plant projects, slated to start operations in 1999, will sell their power to the State Electricity Company (PLN) under a long-term purchasing agreement signed last May. (33/vin)