Chinese banks ready to finance PLN's transmission project

A number of Chinese banks have expressed their keen interest to provide the funding for the construction of power transmission facilities to be built by state power utility Perusahaan Listrik Negara (PLN) as part of the government's power crash program, PLN's president director Eddie Widiono has said.

Eddie said that the Chinese banks' interest to take part in the funding of the transmission project was expressed in line with the commitment made by the Chinese Chamber of Commerce to support the crash program.

"The Chinese chamber of commerce is committed not only to supporting the development of coal-fired power plants to be built under the fast track program but also their supporting facilities including transmission network," Eddie was quoting as saying by Media Indonesia.

The chamber's support is quite important because without its recommendation, Chinese companies involved in the projects will be unable to raise funds from the Chinese banks to finance their projects.

According to Eddie, the commitment was made during the visit of a number of senior executives of the chamber, and several Chinese banks including China Export and Credit Insurance Corporation to his office on Monday.

He said that the transmission projects to support the power crash program would reach about Rp 10 trillion. (*)