State power utility PT PLN will secure a loan worth US$230 million from the Japan Bank for International Cooperation (JBIC) to finance the construction of a hydro-power plant in North Sumatra.
The power plant is the third Asahan Power Plant with a total power capacity of 180 megawatts (MW), PLN’s director for planning and technology Nasri Sebayang told reporters Thursday.
“JBIC will finance all the project except for land [acquisition] and environment,” Nasri said.
He added that PLN was currently conducting a detailed feasibility study on the project. “The project construction is expected to begin in January next year and to be completed in 2014,” Nasri said.
He added that the Asahan power plant was not included in the 10,000 MW electricity accelerated program, a massive power plant development program designed to help compensate for the absence of power plant investment and construction since the Asian financial crisis hit Indonesia in 1998.
In 2010, PLN expects to book Rp 103 trillion in revenue and receive Rp 37.8 trillion in subsidy payments from the government, PLN’s finance director Setio Anggoro Dewo said.
He added that PLN would be looking for another Rp 21 trillion for its investment projects, including the revitalization of electricity transmission in Java.
“PLN will seek the Rp 21 trillion both from domestic and international stock markets as well as from bank loans,” Dewo said.
PLN’s existing power plants have existing capacity to generate 25,451 MW in total.
Given growth in electricity demand of between 7 and 9 percent this year, PLN must urgently add at least an additional 3,000 MW to its existing generation capacity.
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