JBIC agrees to fund $800 million Cilegon power plant
Tuesday, November 18 2003 - 01:28 AM WIB
PLN?s president director Eddie Widiono revealed that the JBIC has already agreed in principle to provide a $800 million loan for the project.
?If possible, we will start the construction (of the plant) by end of this year, but it is most likely to start in early 2004,? told reporters in Pandeglang, Banten on Monday.
Eddie said PLN has already made all the preparations to launch the project and it is waiting for the clearance from the oil and gas upstream authority BP Migas.
PLN hopes to finish the project by 2005 to help to avoid power shortage on Java, the country?s most densely populated island.
Eddie also said PLN will buy gas from China National Oil Overseas Cooperation (CNOOC) Ltd at a good price.
?The plant will use gas from CNOOC?s gas fields in the Seribu Islands (north of Jakarta). They have offered us a good price,? Eddie said.
Meanwhile, Eddie?s expert staff member W. Sulaiman said that CNOOC has offered to sell the gas at a rate of around $2 per MMBTU.
CNOOC is planning to build a 60-kilometer pipeline to transport natural gas to Cilegon from the Pabelokan island, which is the central terminal of its Southeast Sumatra block.
In July this year, JBIC provided 73 billion yen in loans to finance PLN?s gas-fired Muara Tawar plant in West Java and convert Muara karang oil-fired power plant in Jakarta to run on gas.
Indonesia needs to build at least 47 power plants and 14 high voltage transmission lines to meet power demand in the next 10 years, PLN has said. (*)