ADB, AFD to finance Serawak-Kalimantan power grid

The Asian Development Bank (ADB) and the Agence Francaise de Development (AFD) have agreed to provide loans worth US$99 million to partly finance the construction of a power grid connecting West Kalimantan and Sarawak, Malaysia, Bisnis Indonesia reported on Tuesday.

Murtaqi Syamsuddin, the director for planning at state electricity company PT Perusahaan Listrik Negara (PLN) said in Jakarta on Monday that ADB and the French development agency would provide about $49.5 million, respectively for the power transmission project which would cost about $117.8 million to build. ?The remaining $18.8 million will be provided by PLN,? he added.

He said that the loan agreements with the two development agencies were still being finalized. ?Indonesia and Malaysia have agreed to build a transmission with capacity of 275kilovolt (kV) each,? he added.

He said that with the construction of the power grid, PLN would be able to buy electricity from Serawak for West Kalimantan customers beginning 2015. The construction of the Kalimantan-Sarawak transmission is part of the construction of ASEAN Power Grid to be developed by ASEAN members.

In addition, PLN and Malaysian electricity company Tenaga Nasional Berhard (TNB) would also jointly build a power grid connecting Riau and Malaysia.

The power grid will allow PLN to sell electricity supply from a coal-fired power plant to be built in Peranap, Riau. PLN will also team up with TNB and state coal miner PT Bukit Asam to build and operate the power plant which will have capacity of 2 x 600 MW. (*)