PT Bosowa Corporation

PT Bosowa Energi and PT Bank Rakyat Indonesia (Persero) PLC; today, Wednesday, February 6, 2008 has signed a US$ 50 million credit agreement for the financing of the development of coal powered electric generator with a capacity of 2 x 125 MW in the province of Jeneponto, South Sulawesi.

The details of the agreement are as follow:

1. FOREX Credit investment Promissory (1) valued at US$ 50,000,000.- (fifty million USD) to guarantee the development of a coal powered electricity generation the capacity of 2 x 125 MW worth US$ 180,000,000.- (One Hundred Eighty million USD).
2. FOREX Credit Investment Promissory (2) valued at US$ 10,500,000 (Ten Million Five Hundred USD) for the construction of a Jetty/Port.
3. Promissory Facility for Working Capital Credit, valued at US$ 6,897,500 (Six Million Eight Hundred Ninety Seven and Five Hundred USD) to be used for operational working capital of the coal powered electricity generation.

The credit agreement  between the companies was signed by PT Bosowa Energi’s President, Erwin Aksa, and PT Bank Rakyat Indonesia’s Head of the General Business Division, Nandi Hendrian Hamaki, witnessed by the President of Bank BRI, Sofyan Basir, the President of State Electricity Company, Eddy Widiono, the Founder of Bosowa Corporation, HM Aksa Mahmud, and Mrs. Dewi Kam, President Commissioner of PT Bosowa Energi.

Erwin Aksa explains that the overall cost of the project is US$ 180 million, whereas the rest of the remaining financing for the project of US$ 140 million has been secured as loans credit from the China Development Bank. ”The 2 x 125 MW power project will be built in Punagaya Village, Jeneponto Regency, and is expected to increase the supply of power in South Sulawesi, as well as reducing PLN’s annual use of 360 million liters of oil”, he said adding that the first phase of development of the power project will start at 1st semester 2008, and expected to be finished within 24 months time and operational by 2nd semester 2009.