WB to inject $400m into state electricity<\/p>\n
JAKARTA (JP): The World Bank has pledged US$400 million in aid
\nto the state electricity company PT PLN for the electrification
\nof 7,000 villages in the country during the next two fiscal
\nyears.<\/p>\n
"The aid, arranged on behalf of the government, is scheduled
\nto be signed by Minister of Finance Mar'ie Muhammad and a World
\nBank executive in January next year," Minister of Mines and
\nEnergy I.B. Sudjana told reporters during a break at a hearing
\nwith the Commission VI of the House of Representatives yesterday.<\/p>\n
The commitment, which was made after negotiations with the
\nbank went on for almost a year, clearly shows the PLN
\nelectrification program is feasible, Sudjana said.<\/p>\n
PLN's president, Zuhal, said the bank approved the aid with a
\nmaturity of 20 years, including a grace period of seven years,
\nand an interest rate of eight percent per annum.<\/p>\n
"The aid, which will be the first to be received by PLN for
\nits rural electrification program, will be used for the
\nconstruction of electricity distribution stations and the
\ndevelopment of distribution networks," he said.<\/p>\n
The commitment was made early this week at the World Bank's
\nheadquarters in Washington after a meeting between the bank's
\nexecutives and an Indonesian team, headed by Director General of
\nElectricity and Energy Development Artono Arismunandar.<\/p>\n
The Indonesian team included officials of the Ministry of
\nFinance, the National Development Planning Board, the Ministry of
\nCooperatives and Small Enterprises and PLN.<\/p>\n
Cooperatives<\/p>\n
"Of the $400 million aid to be provided by the World Bank,
\nsome $2.5 million will be allocated for cooperatives to get
\ninvolved in the program under the coordination of the Ministry of
\nCooperatives and Small Enterprises," Zuhal said.<\/p>\n
With the electrification of 7,000 villages under the World
\nBank auspices, PLN will still look for other loans from various
\ninstitutions for its electrification program at some 11,619
\nvillages throughout the country during the current sixth Five
\nYear Development Plan (Repelita VI) period, he said.<\/p>\n
Zuhal was optimistic that last month's increase in the
\nelectricity billing rates would help PLN increase its capability
\nto finance its rural electrification program.<\/p>\n
He said only 31,689 of the country's 61,975 villages had been
\nelectrified as of March this year.<\/p>\n
"Due to our limited budget, I estimate that during the
\nRepelita VI period, we can extend our electrification program
\nonly to 18,619 villages," Zuhal added.<\/p>\n
He expects that PLN will have electrified all 61,975 villages
\nby 2004. (fhp)<\/p>",
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