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Rekind-Toyo Consortium Wins Tender for Pusri IIB Urea Plant

signing rekin-toyoIndonesia Finance Today - PALEMBANG (IFT) - Consortium of PT  Rekayasa Industri (Rekind) and Toyo Engineering Corporation, Japan won contracts urea fertilizer plant Pusri IIB owned by PT Pupuk Sriwidjaja (Pusri) Palembang worth U.S. $ 600 million or around Rp 5.4 trillion.

Rekind-Toyo consortium won the tender announced this week to build a plant with a capacity of 2750 tonnes Pusri II B per day, after defeating the other consortium, PT Tripatra-Samsung Engineering, and a consortium of PT Adhi Karya Tbk (ADHI)-Huhan.

Ismed Zain, Corporate Secretary of PT Pusri Palembang, said Rekind-Toyo consortium will build the plant has been ascertained that the plan B II began in early 2013. "Friday (14/12) they have carried out the expected signing of the employment contract until 2015. Early next year has already begun fixing (ground breaking), "he said.

According to Zain, the contract signed with Rekind-Toyo, Pusri IIB plant is expected to run smoothly and is completed on schedule.

Submission of tender of the third consortium has carried out around the beginning of last year. All company consortium has followed the stages of the tender process, until finally announced the winner on schedule in December 2012.

"Construction of the Pusri II B plant will also be involved workforce of 2,000 people for two years running. While the design of the factory workforce of about 300 people, "he said.

Zain added in a contract worth USD 5.4 trillion, Pusri Palembang prepare internal capital around Rp 3 trillion. In addition, also has won Pusri loans worth Rp 7.4 trillion from seven banks with a pattern club deal for plant merelisasikan II B.

Seven banks that provide loans, among others, PT Bank Central Asia Tbk (BBCA) worth Rp 2.6 trillion, PT Bank Rakyat Indonesia Tbk (BBRI) Rp 1.7 trillion, PT Bank BNI Tbk (BBNI) $ 1.3 trillion, PT Bank Mandiri Tbk (BMRI) Rp 1 trillion, Bank Jabar-Banten (BJB) to Rp 400 billion, Bank Sumsel Babel Rp 200 billion and Rp 200 billion UOB Indonesia.

Musthofa, President Director of PT Pusri Palembang, express loans from banks have been agreed after the signing of the deed Pusri implement the agreement.

Long-term investment credit facility is used not only to build the Pusri II B plant, but also to finance the steam turbine generator and boiler coal to support utilities (steam and electricity) from the factory Pusri II B.

Besides loans from banks will be used for the purchase of urea self propelled barge gradually to replace existing vessels Pusri.

According Musthofa, Pusri II B factory to be built is expected to increase gas efficiency and can reduce fertilizer production financing.

In addition to increasing the efficiency and competitiveness of business balance in accordance with the instructions of the President (Presidential Decree) No. 2 in 2012 on the revitalization of the fertilizer plant.

Pusri, he said, has four fertilizer plants, the average built in the 70s, only the IB which was built in 1992, urea fertilizer plant, namely Pusri II, III, IV, and IB.

Of the four factory, has a total installed capacity of approximately 2.2 million tons per year. Pusri II B fertilizer plant will increase the national supply of fertilizer and 2017 amounted to 2.8 million tonnes per year of the total amount

7 million tonnes per year.

Besides Pusri, a subsidiary of PT Pupuk Indonesia Holding Company (PIHC) others, PT Petrokimia Gresik and PT Pupuk Kujang will also build a new plant next year.

Tasrif Arifin, Director of Pupuk Indonesia, said that along with the construction of new plants, Pupuk Indonesia targets to increase urea production to 8.5 million to 9 million tons in 2015. Currently the production capacity of urea Pupuk Indonesia five subsidiaries reach 7 million tonnes per year.

"Project Petrokimia Gresik plant II at least had the next year so that in 2015 the addition of fertilizer production nationwide to strengthen food security," he said. (*)