PLN seeks foreign loans<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
The state-owned electricity company PLN is seeking foreign
\nloans to finance power generation projects in a bid to avoid
\nlooming power shortages in Java and Bali in 2004.<\/p>\n
PLN president Eddie Widiono said on Monday that borrowing was
\ninevitable as the company did not have sufficient internal funds
\nto finance the projects.<\/p>\n
\"We have to seek foreign funds ... no other choice,\" he told
\nreporters on the sidelines of a seminar on the future of the
\ncountry's power industry.<\/p>\n
PLN has said that Java and Bali will experience power
\nshortages in 2004 due to the lack of generating capacity and
\nrising demand.<\/p>\n
PLN estimates that the company's generating capacity will only
\ngrow by about 5 percent per year from 18,600 Megawatts (MW) at
\npresent, while demand will increase by between 7 percent and 11
\npercent from the current peak of 17,000 MW.<\/p>\n
Since the 1997 economic crisis, PLN's financial health has
\ndeteriorated rapidly year by year, making it almost impossible to
\nimplement expansion programs.<\/p>\n
Eddie said that should PLN receive the loans, the company
\nwould channel them into the expansion of its Muara Karang and
\nMuara Tawar generating units in North Jakarta, and the Perak-
\nGrati generating unit in Surabaya, East Java.<\/p>\n
\"We hope these generating units will be able to produce 3,000
\nMW of power before 2004,\" he said.<\/p>\n
By the end of this year, PLN hopes to have started the
\nbuilding of a new Muara Karang generating unit with a capacity of
\n700 MW, which will require US$300 million in funds, he said.<\/p>\n
The other projects would follow later, he added.<\/p>\n
For regions outside Java and Bali, he said, the company would
\nrely on the government funding to build more generating units.<\/p>\n
PLN had earlier said that 24 critical systems outside the
\nJava-Bali grid in 2002 would experience power shortages because
\nof insufficient funds.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-seeks-foreign-loans-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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