PLN, World Bank sign loan agreement for Cisokan hydro power

State electricity company PT PLN has signed loan agreement with the World Bank to finance the construction of Upper Cisokan Pumped Storage hydro power plant.

The power plant, located at the border of West Bandung and Cianjur regencies, in West Java, will generate power capacity of 1,200 MW, making it the largest hydro power plant in the country.

The loan agreement was signed on November 29 after PLN met the prerequisites, such as land acquisition and resettlement action plan (LARAP), environmental impact assessment (EIA), environmental management plan (EMP), dam safety plan, project implementation plan, project review panel and environmental social panel.

?The prerequisites are needed to ensure the construction and operation of the hydropower plant run smoothly,? PLN said in a statement.

The Upper Cisokan hydropower utilizes pumped storage mechanism, the first kind in Indonesia. The total cost of the project will reach US$800 million. About $640 million is funded by loan and $160 million from the state budget.

The West Java Governor has issued the required permit on October 27, 2011 and followed by the signing of agreement. Therefore, the project will now enter construction stage. The power plant is expected to commence operation in 2016.

The electricity from the power plant will connect with the Java-Bali power grid system, which now has capacity to carry 20,000 MW and will rise to 29,000 MW in 2016.

The Upper Cisokan PLTA will be equipped with four power generators, each with an output capacity of 260 megawatts. Power produced by the plant will be integrated with the Java-Bali power network. (giok/godang/bernard/edi)