Bosowa secures suppliers credit from Chengda

Chengda Engineering, EPC contractor for 2x100 MW coal-fired power plant project in Jeneponto, South Sulawesi agrees to provide US$140 million suppliers' credit to Bosowa, the owner of the project. 

Bosowa Corporation CEO Erwin Aksa said the credit bears interest rate of 6% per annum and will mature in seven years. With the financing, Bosowa expects construction of the power plant could start next month and will be accomplished by 2011.

The announced amount is less than Bosowa's statement last September when Aksa said it had secured US$170 million from several Chinese banks.

Construction has been seriously delayed due to financing issues. The project needs US$200 million, of which state-owned bank Bank Rakyat Indonesia (BRI) has provided US$60 million.

EPC contract between Bosowa and Chengda Engineering was signed in November 2006 for a total consideration of US$180 million. 

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