PLN secures Rp1.06 trillion loan to finance transmission projects
Tuesday, December 28 2010 - 02:03 AM WIB
PLN president director Dahlan Iskan said in a statement that the loans which were signed in Jakarta on Monday would be used to finance the construction of transmission facilities to distribute power from new power plants built under the Phase One 10,000 MW fast-track program.
The transmission projects include gas insulated and under ground cable switchgear and conventional substation for PLTU 1 Banten Suralaya coal-fired power plant.
Dahlan said that with the signing of the new foreign currency loan agreement, PLN has secured all loans needed for the development of transmission projects to support the Phase One 10,000 MW program. In December 2009, the four banks also signed local currency loans for the same projects.
Director General of Debt Management at the Ministry of Finance Rahmat Waluyanto said the goverment would fully guarantee the loans for the projects.
PLN will sign in the near future two other credit agreements to finance the development of three coal fired power plants built under the Phase One 10,000 MW program. The credit agreements will be the last to be signed for the Phase One 10,000 MW program.
As many as 36 coal-fired power plants have been or are being built under the Phase One 10,000 MW program. They comprise of 10 power plants in Java and 26 power plants outside Java. They include Labuan coal-fired power plant in Banten, which began operation last year, Indramayu coal-fired power plant in West Java, and Rembang coal-fired power plant in Central Java, which began operation this year. Several other projects in outside Java are expected to begin commercial operation next year.
All the power plants and transmission projects built under the program need a total investment of US$10 billion. About 85 percent of the funding is provided in the form of domestic and foreign bank loans. (bernard)