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PLN secures $380m for 1 GW hydro power plant in W. Java
State-owned electricity firm PLN has secured a US$380 million loan to finance the construction of the 1,040 megawatt (MW) Upper Cisokan hydro power plant (PLTA).
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Representatives of state-owned electricity firm PLN and the Finance Ministry sign a loan continuation agreement on Monday. (PLN/-)
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tate-owned electricity firm PLN has secured a US$380 million loan to finance the construction of the 1,040 megawatt (MW) Upper Cisokan hydro power plant (PLTA) in West Java.
PLN said on Monday it had signed a subsidiary loan agreement (SLA) with the Finance Ministry that had a 24.5 year tenor with “very competitive” interest rates.
The funds will come from the International Bank for Reconstruction and Development (IBRD), which is part of the World Bank Group. The power plant, located on the border of between the regencies of Bandung and Cianjur in West Java, will require a total of $610 million in investment.
Read also: PLN to receive Rp 9.6t from state coffers to build power infrastructure
“We strongly support this [loan agreement] to finance the construction of a renewable energy power plant, which is [expected to be] more sustainable, affordable and sufficient to supply electricity to the surrounding community,” said Finance Ministry treasury director general Hadiyanto in a statement issued on Tuesday.
The Asian Infrastructure Investment Bank (AIIB) and World Bank plan to finance the remaining $230 million needed for the project.
Read also: PLN to build Indonesia’s biggest hydropower plant in N. Kalimantan
