JBIC ready to finance Asahan hydropower project

Japanese financial aid provider Japan Bank for International Cooperation (JBIC) has expressed intention to provide 28.5 billion yen (US$231 million) in loan to finance the development of Asahan I hydropower project in North Sumatra , according to a senior government official.

Director General of Electricity and Energy Utilization J. Purwono said on Tuesday that state owned electricity firm PT Perusahaan Listrik Negara (PLN) was preparing a location permit for the power plant project that will have two units each with the capacity of 90 MW.

“JBIC is wiling to provide loan for the project. What PLN needs to do now is holding an engineering, procurement and construction (EPC) tender and appoint the contractor,” Purwono said.

JBIC has also reaffirmed their readiness to provide financing for the repowering of Muara Tawar, Muara Karang and Tanjung Priok power plants provided that PLN can assure there will be enough gas supplies for the power plant.

On July 14, 2006, The Jakarta Post reported that the power plant would be built by China-based Huan Gian Engineering Corporation and North Sumatra-based PT Basra Daya Sentranusa. Financing for the project will come from the state budget and a Chinese investor, the paper said. (Godang)