PII to provide Rp 90T per year guarantee funds

PT Penjaminan Infrastruktur Indonesia (PII) said it was ready to provide guarantee funds up to Rp 90 trillion per year for developments of power plants under the public private partnership (PPA) scheme.

Synthia Roesly, President Director of PII, said in Jakarta on Tuesday that there were three constructions of power plants that could be soon given such guarantee funds. The three power plants are the mine-mouth steam power plant 9 and 10 in South Sumatra, and hydropower plant (PLTA) Karama in West Sulawesi.

?The two mine-mouth power plants are estimated to require a total investment of US$3 billion, while PLTA Karama will need an investment of US$1.2 billion,? Sinthya said as reported by Kontan daily on Wednesday.

She said that her company was still evaluating the mine-mouth projects before deciding on the amount of guarantee fund needed for them.

The Karama project, she said, was under a pre-feasibility study by its developer, PT Sulbar Group, and its partner Gezhoumba Group.

According to her, PII has signed a memorandum of understanding (MoU) with the state utility PT PLN to provide guarantee funds for up to 1,800 Megawatt power plants. ?Before giving the guarantee funds we?ll evaluate the credibility of all developers, and the process of tender conducted by PLN,? she said. (*)