PLN to sign $330m loan agreement with BRI-led consortium

State owned electricity firm PT Perusahaan Listrik Negara (PLN)will sign a loan agreement worth US$330 million with a consortium of local banks led by Bank Rakyat Indonesia (BRI) this month.

The new loan will be used to finance the development of two coal fired power plants, PLTU Tarahan I in Lampung and PLTU Pangkalan Susu in North Sumatra, Detik reported.

"If God's willing, the loan agreement will be signed this month," PLN's Vice President Rudiantara said Monday evening.

Rudi said PLN is finalizing talks with BRI on the loan agreement.

"We already agreed on pricing. The administrative process is in progress," he said.

The dollar-denominated loan will add to the rupiah-denominated loan worth US$1.25 trillion Bank Mega will provide for the construction of the two power plants, under an agreement recently signed by PLN and the bank, Rudi explained.

PLTU Pangkalan Susu and PLTU Tarahan II are parts of the Phase I 10,000 MW power projects to be built by PLN across the country. The Pangkalan Susu power plant is designed with a capacity of 400 MW, while the Tarahan II power plant located in Katibung district, South Lampung regency will have a capacity of 2x100 MW. (*)