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PLN: 35,000 MW Program 41 Percent Complete

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2 November 2016 08:06 WIB

ANTARA/Muhammad Adimaja

TEMPO.CO, Jakarta - State-owned electricity company PT PLN (Persero) will stick to its plan to complete the financing of power plant construction projects with a total capacity of 18,000 MW until the end of the year. I Made Suprateka, PLN Corporate Communication Unit head, said that the 35,000 MW program is 41 percent complete.

He explained that financing has been secured for 5,000 MW power projects. “There are still 6,300 MW power plants which financing has not been concluded. Some lenders in power plant projects are awaiting Guarantee Letter for Business (Surat Jaminan Kelayakan Usaha) to be issued by the Finance Ministry.”

The PLN says that guarantee for power plants project needs to be issued to the World Bank, Asian Development Bank, Japan International Cooperation Agency. KfW Development Bank, AFD (French Development Agency and International Development Bank. PLN could generate 13 billion US Dollars and 695 million Euros loans for five years of financing.

The PLN encourages private power developers to commence construction phase despite lack of finacing. Made said developers can use advance payment of 10 percent they already paid to the PLN.

At present 5,501 MW power plants are still in construction phase, 7,775 MW power plants are in procurement phase, 11,729 MW are in planning and procurement phase, 64 MW power plants have been operating. Whereas transmission construction is 49.74 percent complete and substation construction is 23.75 percent complete.

To boost project achievement, the PLN plans to change the amount of advance payment to around 5 percent, particularly for power plants with a capacity of under 100 MW. “The money will be very useful to acquire land or in early power plant construction,” PLN president director Sofyan Basir said.

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