Dec 22, 2010

Sinosure to bankroll BATR for US$1 bio

The state-owned coal miner PT Tambang Batubara Bukit Asam Tbk’s subsidiary, PT Bukit Asam Transpacific Railway, will seize US$1 billion from China Export and Credit Insurance Corp (Sinosure) to bankroll an integrated coal-transporting project.
President Director PT Bukit Asam Transpacific Railway (BATR) Rudiantara said that the company is in intensive talks with Sinosure, the Chinese state-owned financial institution, to bankroll the mega-project of coal-transporting train and infrastructure supporting logistics and ports.
“The Chinese financial institution is our good friend. It means that they are ready to finance the project. We expect that the financing scheme from Sinosure will be completed by the middle of next year,” he said as reported by Bisnis today.
With total value of US$1.9 billion, the integrated train project in South Sumatra is a joint venture of Rajawali Group and PT Tambang Batubara Bukit Asam (PTBA). The project is expected to accomplish by 2014.
The joint venture, dubbed as BATR, focuses in constructing a 307-km railway, starting from Banko Tengah, Tanjung Enim Sumatra Selatan to Srengsem, Lampung. Apart from the construction of the railway, BATR also handles logistics and port.
Aside from BATR, Rajawali and PTBA are also working together in coal producing under the name of PT Bukit Asam Banko (BAB), with 35% stakes belong to Transpacific Railway Infrastructure and the other 65% belong to PTBA. BAB, as a coal contractor, is expected to produce coal as much as 27 million ton a year.

Disclosure: No position at the stock mentioned above.  

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