03 August 1998 00:00 [Source: ACN]
The contractor is now waiting for financing to be arranged before proceeding. Funding from the Export-Import Bank of Japan could come through in late Q3, a TEC source said. Engineering and procurement are expected to start before the end of the year.
The Yen35bn (US$251m) cost of the turn-key contract will be paid lumpsum on completion at end-2001. TEC will build the 1200 tonne/day (396 000 tonne/year) ammonia and 1725 tonne/day urea plant with two Indonesian contractors, Rekayasa Industri and Krakatau Engineering Corp.
The facility will use Kellogg technology to produce ammonia and TEC's proprietary process to produce large granule urea.
Bidding by foreign contractors for the contract closed in June 1997, but the award of the tender was delayed due to the economic crisis. Contractors are still awaiting awards for contracts to build two other government ammonia and urea project tenders which closed at the same time. Market players said the projects by Pupuk Kalimantan Timur (Kaltim) and Pupuk Kujang may proceed next year. The Kaltim 4 project startup has been delayed until 2001 (ACN 4 May, p49).
TEC built PIM's first ammonia and urea facility in 1981.
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