BRI provides import guarantee for PLN

Bank Rakyat Indonesia (BRI) has provided a guarantee of US$129 million for state electricity firm PT Perusahaan Listrik Negera (PLN) for the import of goods needed for the development of four coal-fired power plants, Bisnis Indonesia Daily reported on Thursday.

PLN's Vice President Rudiantara said that thanks to the guarantee, PLN is not obliged to provide collateral cost for the importantion of goods required for the development of the power plants, which are part of the 10,000 MW fast track program.

?The provision of the facility indicates the commitment of national banking to the development of power plant project. Even, BRI has been committed to providing loan until the project is completed in 2011,? he said.

The import guarantee effective up February 25, 2010 is provided for the South Sulawesi, Bangka Belitung, Papua 1 and 2 and South Kalimantan power plants. PLN would import goods required by the power plants from China.

BRI has provided a loan commitment of Rp 5 trillion to PLN to finance the development of the 10,000 MW power project and some Rp 3 trillion has been disbursed. (*)