PLN in loan talks with Chinese, UK banks to finance power plant projects

State electricity firm PLN said it was negotiating US$1.23 billion foreign currency loan from Chinese and UK banks to finance three coal-fired power plant projects in Java, which are part of 10,000-MW crash program.

Vice President Rudiantara told reporters on Monday that the company is negotiating to get $293 million loan from undisclosed Chinese to construct Pacitan 2x135MW power plant in East Java. The first unit of the project is scheduled to start operations in February 2010, followed by the second unit in May.

He went further to say that negotiation is also being held with bank of China to secure $371 million loan to construct Tanjung Awar-Awar 2x350 power plant in East Java. The first unit of the project is scheduled to start operations in October 2010, followed by the second unit in January 2011.

PLN is also in talks with China Development Bank and Barclays Bank to raise $468 million for the constriction of 1x660MW Adipala plant in Cilacap, Central Java.The plant is scheduled to be started in 2012.

Under the so-called crash program, PLN will build 35 units of power plant, 10 of which with total capacity of 7,500-MW will be located in Java, with total capacity of 10,000 MW. PLN needs $4.8 billion of foreign currency loan and Rp.18 trillion (US$=Rp.10, 200) of Rupiah loan to construct its power plant projects in Java and outer Java.(bernard)