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Jakarta Post

PLN secures 65% of financing for first 10,000 MW program

  • Alfian

    The Jakarta Post

Jakarta   /   Sat, January 31 2009   /  01:20 pm

State utility company PT PLN concluded Friday a Rp 4.30 trillion (US$378.27 million) loan deal from domestic banks to finance five coal-fired power plants, which are part of the company's first 10,000 megawatt (MW) crash program. The deal means the power company has now secured around 65 percent of the total financing needed for the crash program, which covers the construction of 35 power plants. Witnessed by Finance Minister Sri Mulyani Indrawati, Fahmi Mochtar, PLN's president director, and the domestic banks' senior executives signed the financing commitments, which comprised three loan packages, on Friday. The lenders involved are Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI) and six provincial government-owned development banks (BPDs). Fahmi said loan payment periods were set for 10 years, including three years of grace at the start. "The interest...