Govt asked to finance Java-Sumatra interconnection
Tuesday, February 1 2005 - 05:00 PM WIB
Source: Suara Karya
State owned electricity company Perusahaan Listrik Negara (PLN) has asked the government to help finance the construction of a power inter-connection network connecting Java and Sumatra, Suara Karya reported on Wednesday.
The paper quoted PLN president Eddie Widiono as saying that the government could seek for export credit facility from foreign countries.
"We have proposed to Bappenas (National Development and Planning Agency) for an export credit facility worth about US $200 million to finance the power interconnection project," said Eddie.
PLN would tender the project in three to six months after the government agreed to provide the financing of the project, he said, adding that the project was initially scheduled for construction in 2004 but it had been delayed due to financial problem.
He said that the power interconnection facility was expected to distribute an excess of power supply in Java, which reached about 600 MW a year to Sumatra. "With the power interconnection, PLN is able to save the excess of power supply in Java," he added. (*)