Category : Business, Corporate News
"We are also asking local companies to join the tender, " United Tractors financial director Iwan Hadiantoro said on Friday.
Meanwhile, United Tractors will postpone is financial of 2,000-megawatt Tanjung Jati B 5 and 6 units of the coal-fired power plant expansion in Central Java by early 2017."There is no hampering factor in our decision to postpone the financial closing. This is just mainly the technical agreement," Iwan added. The company initially planned the financial closing to take place by the end of the year, but was delayed while waiting for syndication from eight international banks.
The fifth and sixth power plant projects — to be carried out by United Tractors and Japanese heavy machinery and mining firms Sumitomo and Kansai Electric Power — will expand Tanjung Jati B first to fourth unit power plants.
The fifth and sixth power plants are worth a total $4 billion and will be 80 percent funded, or $3.2 billion, via six Japanese and two French banks, with the remainder coming from the company's equity.
According to Iwan, progress is on target and completion is slated for 2019. The expansion project would almost double the 2,640 megawatts power of Tanjung Jati B power plant current capacity.
United Tractors and Kansai Electric Power both hold 25 percent in the project, while Sumitomo controls 25 percent.
UNTR is branching out its business to power sector as it is the part of the company's strategy to minimize losses from low commodity prices.
The power sector business is in line with the government's effort to add 35,000 megawatts to the national power grid in order to boost the investment.