PLN needs more funds to complete Musi plant

State electricity company PLN needs additional funds of about US$60 million or equivalent to Rp 480 billion to complete the construction of the Musi power plant in Bengkulu, southern Sumatera, Neraca daily reported on Saturday.

The company's director for operation Tunggono said that the money would be needed to build turbine, generator and several other power generating equipment. "We are still processing weather we will raise loans from ADB, export credits or joint operation with private companies," he said.

Speaking after the groundbreaking ceremony for the construction of an underground office for the operation of the Musi plant, Tunggono said that PLN would most probably cooperate with private companies to procure such equipment under a joint operation scheme.

Tunggono, however, did not mention how many companies have shown interest to join the Musi power project, which began almost 15 years ago but was delayed in 1997 due to the country's worst ever crisis. The total costs for the construction of the power plant could reach $197 million.

The Musi power plant, with generating capacity of 210 MW, is expected to solve the power shortage in South Sumatera. (*)