Govt willing to guarantee 10.000 MW project: PLN

The government has expressed its willingness to guarantee all of the risk related to the coal-fired power plant construction projects aimed to provide additional power supply of 10,000 MW following an agreement with Chinese investors on the lower loan interest rate, Republika reported Thursday.

 

The daily quoting state electricity firm PT Perusahaan ListrikNegara’s (PLN) president director Eddie Widiono as saying in Jakarta Wednesday that there should no longer be a question on who would guarantee the 10,000 MW project because the government said that it would be willing to do so.

 

“At the meeting, it was agreed that the government would guarantee the risk of the 10,000 MW project on the condition that the interest rate of the loan secured from (Chinese investors) is lower,” he said.

 

Eddie declined to disclose the interest rate set by China. But, he promised to announce the technical funding (for the 10,000 MW project) next week.

 

He said that the setting of the loan interest rate should refer to LIBOR and besides, the loan interest rate should be lower than that of international bonds.

 

Eddie denied a report that the loan interest rate issue would delay the 10,000 MW project. As of now, the project is run as planned, he said. (*)