PLN sign syndicated loan worth Rp 4.4t for transmission project
Monday, May 23 2016 - 03:27 PM WIB
The loan agreements were signed by PLN?s President Director Sofyan Basir together with state owned construction firm PT Waskita Karya?s President Director M. Choliq, President Director of state owned Bank Rakyat Indonesia (BRI) Asmawi Syam and President Director of Bank Central Asia (BCA) Jahja Setiaatmadja.
Waskita has received the contract to build the 470 circuit km, 500 kV transmission linking Aur Duri in Jambi to Peranap-Perawang in Riau. Up to Rp 4.4 trillion in syndicated loan ? comprising of Rp 3.4 trillion from BRI, 1 trillion from BCA ? will be provided for the project. The loan has a tenor of seven years and a grace period of three years.
In the agreements, Waskita acts as debtor and once the project is completed, Waskita will transfer the project and the debt payment obligation to PLN. As part of the agreements, PLN signed an agreement with Waskita, in which the former will provide equity for the project.
?This shows PLN?s commitment to cooperating with the national banking industry to bring the nation into progress, particularly the electricity sector,? Sofyan said.
The EPC workers for project are divided into two work packages. The first package involves the development of a 500 kV, 320 circuit km transmission line from Aur Duri to Peranap with four circuit towers over a period of three years. This contract is worth Rp 3.88 trillion. The second package involves the development of a 500 kV, 160 circuit km transmission line from Peranap to Perawang with four circuit towers over a period of three years. The contract is worth Rp 2.83 trillion.
Once completed, the transmission line will become the backbone for transmission of power from southern Sumatra to northern Sumatra. It will thus create a stability of power supply in the Sumatra power grid. The project will support the operation of power projects to be built in Sumatra as part of the 35,000 MW power program.
Editing by Johannes Simbolon