PLN?s 10,000 MW power projects get special treatment

The government has finally awarded a special treatment status for the planned coal-fired power plant projects with a total capacity of 10,000 megawatts (MW) through the Presidential Regulation No. 86/2006, Bisnis Indonesia reported Saturday.

The regulation will provide guarantee for the payment of state electricity firm PT Perusahaan Listrik Negara (PLN)?s export credits.

The regulation was signed by President Susilo Bambang Yudhoyono on October 18, 2006.

Under the Presidential Regulation, the new coal-fired power plants are exempted from the conditions mentioned in the Presidential Decree No. 59/1972 regarding prohibition of providing government?s guarantee to external debts in case of state enterprises? projects.

Regarding this new Presidential Regulation, the Anti-corruption watchdog KPK said it will study the contents of the regulation, which provides special treatment to PT PLN?s power projects.

The new guarantee to PLN?s projects will be included in the State Budget starting from 2009. This means it will place a burden for the new government after the elections in 2009.(*)