PLN names banks to arrange loans for power projects

State electricity firm PT Perusahaan Listrik Negara (PLN) has appointed three local banks and two international banks as lead arrangers for financing of three coal-fired power plants, the company said on Wednesday.

The three projects -- the Labuan, Indramayu and Rembang power plants on Java island -- will generate 2,250 megawatts of electricity which will improve power supplies for Java-Bali islands as well as reduce dependence on oil-fuelled power plants.

They are part of the government's plans to generate an additional 10,000 MW of power by 2010, most of it through coal-fired plants.

PLN has appointed Bank Centra Asia, BNI and Bank Mandiri to lead arrange financing for the rupiah content for each of the three projects, said Parno Isworo, PLN's finance director.

Bank of China and Barclays have been appointed to lead arrange the financing for the U.S. dollar component of the Indramayu and Rembang projects.

The three projects will need 4.4 trillion rupiah and US$1.1 billion.

"The company will be the direct borrower under the loan agreements with the ministry of finance providing a full government guarantee to support PLN's obligation," Isworo said.(*)