Indonesian state power firm secures loans to finance mega power projects

Source: Xinhua| 2018-11-14 23:19:43|Editor: Mu Xuequan
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JAKARTA, Nov. 14 (Xinhua) -- Indonesian state power firm of PLN obtained more funding backups to finance power transmission and substations projects, a PLN director said on Wednesday.

PLN Financial Director Sarwono Sudarto said the latest syndication loans of 4.5 trillion rupiah (about 304.4 million U.S. dollars) received by PLN were from three state banks, namely Bank BNI, Mandiri, BRI and 1 private bank, Bank Central Asia (BCA).

"Besides providing more competitive cost of funds, the national syndication loans would expand national currency loan portfolio in PLN's debts related to mega power plant projects," he said in a statement.

The loans from national banks were guaranteed by government, reiterating PLN's crucial role in carrying out the massive project, Sarwono added.

The loans from national banks would be used to finance transmission grids and substations in transferring power supply from east, central and west parts of key Island of Java to the capital city of Jakarta.

Besides securing power supplies to the capital city, the transmission and substation projects were also designed to ensure reliability of power supplies in Java and Bali, he added.

PLN initially received 1.62 billion U.S. dollars of syndication loans provided by 20 international banks to finance 35,000 MW power plant projects.

The mega power plant projects have been carried out in several areas across the country with 31,977 MW of power projects having been approved as of April this year.

Power plants designed to produce 17,192 MW from the planned total capacity have been built so far.

Indonesia expected to see national power capacity to reach up to 80,000 MW next year from 63,000 MW at present. The government has planned to expand more power production from renewable fuels, adding national power capacity by up to 42,000 MW from 2024 to 2025.