After completing formalities this week with four local banks for loans worth US$1.1 billion, state power utility PT Perusahaan Listrik Negara (PLN) announced Tuesday it will soon receive another $900 million from foreign banks to fund power projects.
PLN vice president Rudiantara said PLN has signed agreements with the foreign banks, as yet not specified. It expected to receive the dollar denominated loans shortly.
To complete construction of 35 coal-fired power plants with a total generating capacity of 10,000 megawatts, PLN needed US$4.4 billion of dollar loans and Rp 17.5 trillion ($1.9 billion) in local currency, Rudiantara said.
For the dollar loans, the firm had secured $1.5 billion, would soon receive another $900 million and expected to mobilize the remaining $2 billion from internal funds or other schemes, possibly including a global dollar bond.
PLN secured loans from China Exim Bank in January, a consortium of local banks in April and the Bank of China in May.
On the rupiah denominated loans, a total of Rp 13 trillion had been secured by PLN which "will look for the remaining Rp 4.5 trillion from local banks," Rudiantara said.
Aside from funds to develop power plants, PLN also needs dollar loans worth $900 million and local loans of Rp 14 trillion to fund electricity transmission systems.
These funds would come from PLN internal sources and the securities market, Rudiantara said.
On Tuesday, PLN signed memorandum of understanding (MoUs) with four local banks -- Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Mega and Bank Bukopin -- for the construction of 13 of the 35 power plants.
BNI, in cooperation with BRI, channeled a dollar denominated loan worth Rp 2.74 trillion for the construction of a 315 megawatt plant in Banten.
Bank Mega channeled a rupiah denominated loan worth Rp 4.61 trillion for the development of 10 power plants, while Bukopin channeled Rp 2.65 trillion for two power plants.
Construction of the whole 35 power plant program is planned for completion in 2010.
At loan agreement signing ceremonies with the four banks, Finance Minister, Sri Mulyani Indrawati, said she expected PLN to have a healthy balance sheet and to ensure Indonesia had enough electricity.
"PLN has been too slow (in fulfilling electricity needs) ... I will ensure power needs are met," said Sri, who is also the coordinating minister for the economy.
As a result of inadequate electricity supply, some companies are being forced to shift two work days from weekdays to weekends, once a month, starting in August.
