PLN hopes to raise more bank loans from China, Europe

State-owned electricity company PT Perusahaan Listrik Negara (PLN) expects to raise additional loans from Chinese banks to solve financing difficulties for the construction of several new power plants outside Java.

PLN?s president director Fahmi Mochtar said in Jakarta on Friday that the firm was still negotiating with a number of Chinese banks including Bank of China, China Export-Import Bank, China Development Bank and Synosure.

PLN recently signed loan worth US$262 million from a syndication of China Development Bank and Barclays to partly finance the construction of a 2 x 315 MW coal-fired power plant in Rembang, Central Java.

In addition to Chinese banks, a number of European banks including KFE Bank of Germany and BNP Paribas of France had also expressed their keen interest to provide loans for the construction of power transmission facilities to support the operation of dozens of new coal-fired power plants currently being built under government?s fast-track program to provide additional power supply of 10,000 MW within three years until 2009-2010. (godang)