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World Business Quick Take

■ ENERGY

Korean firm eyes PRC coal

State-run Korea Electric Power Corp, or Kepco, said yesterday it would take a 34 percent stake in a US$1.34 billion Chinese joint venture that will develop coal mines and buy and build power plants over the next five decades. Kepco, will "acquire 15 power plants, build nine power plants and develop nine coal mines in Shanxi, China," as part of the joint venture, the South Korean utility said. The 24 power plants will have a combined capacity of 9.33 million kilowatts and the nine coal mines are expected to produce 60 million tonnes of coal a year.



■ AVIATION

Alitalia interests KLM

Air France-KLM said yesterday it has declared an interest in acquiring loss-making Italian airline Alitalia, but insisted its "letter of interest" was not legally binding. The carrier gave no details on how much it was prepared to bid for Alitalia, which is 49.9 percent owned by the Italian government and reportedly losing around US$1.5 million a day. The government of Italian Prime Minister Romano Prodi had given yesterday as a deadline for any offers before choosing one by the end of the year and entering into exclusive negotiations. Other possible bidders are thought to include Germany's Lufthansa and Italy's Air One.



■ FINANCE

Indonesia cuts rates

Indonesia's central bank cut its benchmark interest rate by 25 basis points to 8 percent yesterday, saying its inflation target was on track and risks stemming from high oil prices were under control. "It is expected that the rate cut will not disturb inflation targets in the medium to the longer term," Lukman Boenjamin, Bank Indonesia's director for public relations, told reporters. The bank hoped the cut would help spur higher economic growth, the official said. Over the past four monthly policy meetings, the central bank had kept its key rate steady.



■ ENERGY

China to subsidize refiners

China will give subsidies to oil refiners to offset the gap between high crude oil prices abroad and controlled domestic fuel prices, state media said on Wednesday. The companies will receive rebates and will be exempt from paying oil import duties, Xinhua news agency reported, citing the National Development and Reform Commission. The report gave no dollar figure for the subsidies. Last month, the government raised retail prices for gasoline and diesel by almost 10 percent. It also ordered the country's two biggest refiners, PetroChina and rival Sinopec, to produce more fuel. But refineries are still facing huge losses, and some have halted or reduced their production.



■ PHARMACEUTICALS

Japan plugs generics

Japan plans to offer incentives to pharmacists who dispense generic drugs, aiming to cut snowballing medical costs, an official said yesterday. Japan is one of the largest drug markets in the world. The health ministry "has decided on a plan reviewing the whole medical service fee system for the next fiscal year" starting in April, the official said on customary condition of anonymity. Under the plan, pharmacists would receive preferential renumeration through Japan's national health program if 30 percent or more of the drugs they dispense are generics, the official said.
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