Ann: Funding Update , page-12

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"Bakrie negotiates with Europe-based geothermal investors
Rabu, 14 Desember 2011 | 12:05 WIB

M. Tahir Saleh


JAKARTA: The holding company of Bakrie Group, PT Bakrie & Brothers Tbk, is negotiating with European investor to construct geothermal project in Java and East Nusa Tenggara Island worth US$2.5 billion.

Previously stated, Bakrie is also cooperating with Australia-listed Panax Geothermal as the owner of geothermal power plant in Sokoria, Flores, East Nusa Tenggara.

“We are currently discussing with new investor. There will be three parties in the project; Bakrie, Panax and the European investor,” said BNBR-coded company’s President Director Bobby Gafur S Umar.

Panax, the owner of 95% shares in a geotermal project in Jambi, in June stated the company will work together with PT Bakrie Power to drill the 30 MW plant with stock composition of 45% and 55%.

Besides in Sokoria, Panax and Bakrie also work in two geothermal projects in Dairi Prima, North Sumatra with 35 MW of capacity with 51% of share portion and in Ngebel-Wilis, East Java with 165 MW capacity and 35% share portion.

The power plant project is part of the company total project with total investment of US$3.5 billion in 3 years-4 years. For power plant project in Kalimantan, the company cooperate with India-based Tata. Another projects are gas pipeline and toll road construction.

To finance all projects worth US$3.5 billion (IDR31.79 trillion)in total, BNBR-coded company will seek for fund sources such as project financing, fund management, equity fund and strategic cooperation with partners.


Fund

The company will balance the company's cash flow by setting up funds which is planned to be launched in the first quarter of 2012, by involving its subsidiaries in the projects.

Nevertheless, Bakrie & Brothers is yet to disclose the funding mechanism. “It will be in stages, and there will be general fund, plus specific dedicated fund directly involved in the prohect,” Bobby said. (t05/ags)"