PLN to build three new power plants in Sulawesi

State owned electricity company PLN has received a strong commitment from a number of international financial agencies to finance the development of three new power plants in Sulawesi, Media Indonesia reported on Friday.

The manager of PLN's branch for North Sulawesi, Central Sulawesi and Gorontalo, Edison Saragih, said on Thursday that the Asian Development Bank (ADB) would provide soft loan worth US$25 million for the development of the second unit of the geothermal power plant Lehendong, which will have a capacity of 20 MW.

ADB will also provide another US$60 million in soft loan for the development of the Poigar hydropower plant which will have a capacity of 2x16 MW. He added that Japan Bank for International Cooperation (JBIC) has also been committed to providing US$35 million for the construction of the third unit of the Lehendong which will also have a capacity of 20 MW.

The construction of the new power projects is expected to begin between 2007 and 2008.(*)