JBIC to provide $155 million for Sumatra transmission project
Friday, April 13 2007 - 05:00 AM WIB
Herman Darnel Ibrahim, director of state-owned electricity company PT Perusahaan Listrik Negara's (PLN) power transmission and distribution, said that the loan will be used to finance the 275 KV electricity grid, which would be part of the 1,200-km power transmission network to be built in Sumatra.
He said in Jakarta Thursday that the other 900-km segment of the Sumatra power transmission project would link Lahat-Gumawang-Seputih Bayak-Sutami, Kiliranjao-Semangkok and Galang-Binjai.
?For this segment of power transmission network, we have not yet received any loan commitment,? he said.
According to Herman, the power transmission network would be tendered this year so that the project could be completed between 2009 and 2010. ?The feasibility study is now underway,? he added.
According to him, the Sumatra power transmission network would be connected to the cross border power grid, which would link Pekanbaru in Riau province and Malaka in Malaysia and estimation cost of the project about $300 million. ?JBIC is expected also to finance this project,? he added.
Meanwhile, deputy director of PLN?s power transmission Djoko Hastowo said that the $155 million loan would be provided as part of bilateral cooperation between Japanese and Indonesian governments.
He said that the Indonesian government would then provide the fund to PLN as loan.
Djoko said that the construction of the 900-km power grid would cost about Rp 2.7 trillion or between Rp 2 billion and Rp3 billion per kilometer. (godang)