PLN secures $610m loan from China Exim Bank

State electricity firm PT Perusahaan Listrik Negara (PLN) has secured a loan amounting to over $600 million from The Export-Import (Exim) Bank of China to finance development of two power plants.

The loan agreement was signed on Wednesday by PLN?s President Director Eddie Widiono and The Exim Bank of China?s Chairman and President Director Li Ruogu.

PLN will use the funds to build a 1x625 MW New Suralaya power plant in Banten worth $284.3 million, and a 1x660 660 MW New Paiton power plant in East Java worth $330.8 million.

The projects are part of the plants to be built under the government's 10,000 MW fast track program.

The loan from The Exim Bank of China has a tenor of 15 years, including a three-year grace period.

Both power plants will be built by Chinese companies. The New Suralaya power plant will be built the consortium of China National Technical Import and Export Corp (CNTIC, while the New Paiton power project by a consortium comprising among others Harbin Power Engineering. (godang)