JBIC delays loan for PLN
Saturday, December 15 2001 - 03:27 AM WIB
The Japan Bank for International Cooperation (JBIC) has delayed the disbursement of some US$700 million loan to be used for boosting the capacity of the state-owned electricity company PLN, according to Minister of Energy and Mineral Resources Purnomo Yusgiantoro.
Purnomo was quoted Friday by the Bisnis Indonesia daily as saying that the loan was crucial to general an additional electricity power of around 1,000 MW to avoid electricity crisis in the Java-Bali region in the next four years.
He did not clearly say why JBIC made the delay, but he said that the Bank had already disbursed some $480 million to the government and had all been used to finance gas pipeline project.
Purnomo said that it was important to avoid the power crisis in the Java-Bali area including to protect Japanese industries operating in the region.
He said that he planned to meet the Japanese Ministry of Energy to negotiate.(*)