State electricity producer, PT Perusahaan Listrik Negara (PLN), said Monday it would soon open the bidding for three new electricity industry projects, to be financed by export credits.
The projects are to install a submarine cable connecting Bali to Java, to upgrade electricity distribution networks in Jakarta and to expand capacity for the gas and coal-fired (PLTGU) Muara Tawar power plant, in Bekasi, West Java.
The submarine cable project in Bali is estimated to cost US$60 million, while the projects in Jakarta and West Java will cost about $300 million and $1 billion respectively.
PLN planning and technology director Bambang Praptono said those interested in financing the projects included the Japan Bank for International Cooperation (JBIC) and the German development finance bank, KfW.
Bambang said that the funds for the project would be mobilized from export credits and PLN's internal budget and suggested that PLN would finance between 15 and 20 percent of each project.
"For example if Muara Tawar requires $1 billion to increase its capacity, so it will take *about* $850 million from export loans, and $150 million allocated by PLN," he said.
Bambang said apart from the three projects, PLN planning to build a new coal-fired steam power plant (PLTU) in Indramayu, West Java. This will be part of the second 10,000 megawatts program to boost electric power in the country, expected to start implementation year.
Bambang said that the Indramayu power plant, which will produce two times 1,000 megawatts, needs $2 billion in investment.
"So far, JICA (Japan International Cooperation Agency) is committed to finance the project," he said, adding the plant would start to be built in 2012 and be running by 2015.
Under the second 10,000 MW program, up to 83 power plants will be tendered out, including 65 plants outside Java. PLN expects to further extend its plan to reduce its oil-based fuel consumption from 8.01 million kiloliters in 2009 to 4.56 million kiloliters by 2010.
PLN coal consumption would increase from 23.77 million tons in 2009 to 31.70 million tons by 2010, while gas consumption would increase from 313,716 Billion British Thermal Units of gas (BBTU) in 2009 to 323,447 BBTU by 2010.
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