Absence of collateral slowing down power plant development

The Energy and Mineral Resources Ministry said the absence of the government in deciding to set aside assets as collateral to secure financing for power plant projects was behind the slow progress of the 10,000 megawatt power plant acceleration program part II.

?As of today, there is no decision on part of the government in relation to providing assets as collateral to secure financing for PLN power plants,? said Director General for New, Renewable and Energy Conservation, Kardaya Warnika.

The Finance Ministry has earlier said the government would set aside government assets that would be used as collateral in securing financing for power plants to be developed by the state electricity firm PT PLN.

Kardaya said the collateral is important in accelerating the development of second stage of the power plants acceleration program, which will focus on geothermal and hydro power.

He said the energy ministry is now waiting for decision from the Finance Ministry over the decision to set aside assets as collateral. (godang)