State power firm PT Perusahaan Listrik Negara (PLN) and independent private power producers (IPPs) will need about US$10 billion for power plant construction in the second phase of the 10,000 megawatt (MW) power program.
Aside from funds to construct power plants, funds will also be needed for other areas of work, PLN president director Fahmi Mochtar said Tuesday, which would mean that total associated investment would have to be much higher than $10 billion.
“The $10 billion is for the power plants only. The total investment [needed] will be more than that as we also need financing for transmission,” said Fahmi.
The program, the second 10,000 MW program set up by PLN, is expected to be planned and implemented between 2010 to 2014.
During a presentation in August, PLN said that the projects under the program were expected to generate a total of 10,580 MW .
Of this capacity, 5,685 MW will be located in Java and the remaining 4,895 MW will be outside Java.
“The company will manage 60 percent of the project and IPPs will manage the remaining 40 percent,” said Fahmi.