PLN Coal Power Project Gains USD626mn from Chinese Banks

Indonesia state grid PLN reached agreements with China Development Bank (CDB) and the Indonesia subsidiary of Industrial and Commercial Bank of China (ICBC, SEHK: 1398, and SHSE: 601398) in Jakarta on October 14, 2009, saying that the former will gain consortium loans of USD 625 million for a coal-fired power station from the two Chinese lenders.

The project is the largest coal-fired power generator cooperation project under the "rapid channel" in Indonesia, which is supported by consortium loans by CDB, a policy bank, and ICBC, the largest lender in China by market value, and has the ICBC Indonesia subsidiary as an exclusive agent for the consortium loan.

This is expected to be an essential economic, technical, and capital cooperation between the two governments, said Zhang Qiyue, China's ambassador in Indonesia, and Indonesia's finance minister Sri Mulyani. PLN is the largest electric power generator and the only power transmission company in Indonesia

Source: www.hexun.com (October 15, 2009)

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