ADB ready to resume financial support for Musi hydropower development

The Asian Development Bank is set to resume financial support to the development of the hydropower PLTA Musi electricity project in South Sumatra.

But ADB required the government to revoke the 1998 presidential decree on the postponement of several electricity projects including the Musi hydropower project, the Neraca daily reported.

Operation director of state electricity firm Perusahaan Listrik Negara (PLN) Tunggono confirmed the news.

But he declined to provide further comments.

The Musi hydropower electricity project was cancelled, along with other power projects, last year as the country plunged deeper into its economic crisis.

The project was started in 1997 with total investment estimated at the time at US$200 million. (*)