PLN has three options to finance Phase II crash program: VP

Vice President Jusuf Kalla has asked state-owned electricity company PLN to study at least three options to finance the Phase II crash program to provide another 10,000 megawatt (MW)of power supply, Kompas reported on Monday.

The three options, according to the Vice President, are the securitization of the company?s assets, to issue Islamic bonds called Sukuk and to sell some of the existing assets.

?Selling the existing assets to raise funds for the new power projects should become the last option,? Kalla told reporters during his visit to Bali on Sunday.

PLN?s president director Fahmi Mochtar said in Jakarta on Thursday the company might sell some of the new coal-fired power plants currently being built under the Phase I 10,000-MW crash program to raise funds for the construction of new power plants to be built under the Phase II crash program.

PLN is currently building dozens of coal-fired power plants under the Phase I crash program which is expected to provide an additional 10,000 MW of power supplies. The consotrution of the Phase II power projects will begin once all the Phase I projects are completed by the end of 2009.

All power plants being built under Phase I will use coal as fuel, while the power plants to be built under the Phase II will use geothermal steam and gas as fuels. (*)