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Sunday, 10 July 11
PTBA INCREASES SHARES IN COAL TRAIN PROJECT - TEMPO INTERACTIVE


TEMPO Interactive reported that, PT Tambang Batubara Bukit Asam (PTBA) is still studying the plan to buy 20 percent of shares in the PT Bukit Asam Transpacific Railway (BATR). "We have appointed PricewaterhouseCoopers as the consultant. We are now calculating the possibilities,” said Sukrisno, from the State-owned Enterprises Ministry.

BATR is a coal train construction project in Tanjung Enim, South Sumatra which will connect to a new port in Lampung. The transportation capacity is estimated to be 25 million tons per year with a railway stretching for 307 km. The construction design contract of the project, worth US$1.3 billion, was signed in March 2010, as quoted by TEMPO Interactive.

PTBA currently holds 10 percent of shares in the project. The other shareholders are China Railway Group (10 percent) and Rajawali Group through PT Transpacific Railway Infrastructure (80 percent).

The share increase will be done by transferring the shares owned by Rajawali in BATR, which will allow PTBA to own 30 percent of shares.

China Railway Group’s shares will remain 10 percent and Rajawali’s 60 percent. “If I’m not mistaken, the ground breaking will be this November. We expect the result can be achieved before that," Sukrisno said.

PTBA has prepared US$320 million to buy the additional shares, 30 percent of which is taken from internal funding and 70 percent from bank loans.



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