PT Bukit Asam to Raise $150 Million for Coal-Fired Power Plants and Railway Project

Strategic Insights -

State-owned coal mining company PT Bukit Asam is seeking to raise $150 million for its financing share in a project that includes three coal-fired power plants and a 320-kilometers railway track. The company will provide $240 million for the two projects, with $200 million allocated for the power plants and $40 million for the railway track. PT Bukit Asam is planning to issue bonds or seek bank loans to cover the remaining balance of $150 million. The company has sufficient cash to cover around 60% of the project's cost, but needs external financing to cover the remaining 40%.

Key Takeaways:

  • PT Bukit Asam is planning to raise $150 million for its financing share in a project that includes three coal-fired power plants and a railway track.
  • The company will provide $240 million for the two projects, with $200 million allocated for the power plants and $40 million for the railway track.
  • PT Bukit Asam is planning to issue bonds or seek bank loans to cover the remaining balance of $150 million.
  • The power plants include a 2x100 megawatts plant in Banjarsari, a 4x600 MW plant in Banko Tengah, and a 2x250 MW plant in Pranap.
  • The consortium will seek loan to cover 70% of the investment for the power plants, while its members will put up 30% in equity.
  • The Tanjung Enim-Tarahan railway track is estimated to cost $700 million, with PT Bukit Asam providing $40 million for the investment.
  • The power plants are expected to be completed in 2009, with the coal for the power plants to be supplied by PT Bukit Asam.

Statistics:

  • $150 million: Ammount of money PT Bukit Asam is planning to raise for the project.
  • $240 million: Total amount of money PT Bukit Asam will provide for the two projects.
  • $200 million: Amount of money allocated for the power plants.
  • $40 million: Amount of money allocated for the railway track.
  • $850 billion: Amount of money PT Bukit Asam has in cash reserves.
  • 70%: Percentage of investment for the power plants that the consortium will seek loan to cover.
  • 30%: Percentage of equity that the consortium members will put up for the power plants.
  • $700 million: Estimated cost of the Tanjung Enim-Tarahan railway track.
  • $40 million: Amount of money PT Bukit Asam is providing for the railway track investment.
  • 2009: Expected completion year for the power plants.

Sources:

  • Asia Pulse, August 10, 2023
  • ANTARA, August 10, 2023