Electricity Project Facing Funding Problems
Wednesday, 19 March, 2008 | 17:08 WIB

TEMPO Interactive, Jakarta: The Finance Department is still trying to obtain a loan of Rp17 trillion for five steam-powered electricity generating plants that are part of the 10,000 megawatt electricity project.

The total cost of these five plants is almost Rp20 trillion and some 15 percent, or Rp3 trillion, will come from the budget of the State Electricity Company (PLN).
Yogo Pratomo, Chairman of the Electricity Generating Plant Acceleration Program Team, said his team would act as the coordinator for raising funds.

“PLN will still be involved on the technical side,” he said on Tuesday (18/3).

Yogo explained that the Finance Department was involved in finding loans for this electricity project.

The government, through Presidential Regulation 71/2006, will act as a full guarantor for this project.

The Finance Department will determine and select the funding institutions, as well as setting the criteria.
Loans in Rupiah will be sought from domestic banks and foreign currency loans will be from international commercial banks.

“The Finance Department will control the selection and decide the winner,” said Yogo.

According to him, the Finance Department will invite domestic and international commercial banks to submit the funding offer for five PLTU projects before the end of March.

Yogo said he expected the loan contract to be signed within two or three months.

NIEKE INDRIETTA