Private power generators get $512 million loans

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)