PT Semen Gresik Tbk allocated US$574m funds or IDR5.34 trillion to build a steamed-based power plant built this year until 2010.
The capital expenditure this year is to increase into US$1.22bn as from the former projection of US$1.1 billion.
As to President Director of Semen Gresik Dwi Soetjipto,, the project development this year will use the company internal cash.
"Our internal cash is enough to cover some projects including the power plant we will build this year," he said to Bisnis yesterday.
Semen Gresik is finalizing bank loan to fund the new plant for the capacity enhancement through de-bottlenecking (modified machinery) and new power plant. The banks interested in funding Semen Gresik include Standard Chartered Bank and Citibank.
Besides, there are some local major banks offering their loan commitment to the company such as Bank Mandiri.
Corporate Secretary of Semen Gresik Saifuddin Zuhri said the 10 PLTUs planned include those in Tuban, Makassar, Padang and surrounding Central Java. The total power of these PLTUs is 410 MW.
The company will have beauty contest to select operators building the PLTUs and Truba Alam Manunggal Engineering Tbk is among the operators here.
Saifuddin said the company will increase the capital expenditure this year into US$1.22bn of IDR11.4 trillion on the assumption of US$1=IDR9310.
The finalised capital expenditure will be allotted for the construction of the US$355m two cement factories in Makassar and the US$315 million one in Central Java totaling the US$670m projects. "The power plant has US$574m allocation," he added.