PLN seeks funds to revamp power plants outside Java and Bali
PLN seeks funds to revamp power plants outside Java and Bali
SURABAYA, East Java (JP): State-owned electricity company PT
PLN is currently seeking foreign financial support for its plan
to rehabilitate power plants outside Java and Bali, an executive
at the Ministry of Mines and Energy said.
Director General of Electricity and Power Development Endro
Utomo said on Monday at least 20 regions, particularly in
Sulawesi, Kalimantan and Irian Jaya, faced electricity shortages
due to the limited networks and aging power plants in their
areas.
"At least Rp 22 billion (US$2.9 million) is needed for the
rehabilitation of the power plants," he said during a break in a
ceremony marking the completion of gas-fired power plant Gresik
Unit I in Gresik, East Java.
Rehabilitating aging power plants is a must for PLN in order
to meet the future demand for electricity, which is expected to
grow at an average rate of 15 percent a year, he said.
He said some of the funds for the project would come from
PLN's income, which would increase next month as the result of
the government's decision to raise electricity rates.
The government obtained the House of Representatives' approval
last month to raise electricity rates by an average of 29.43
percent starting on April 1.
Endro said the remaining funds would come from loans from
foreign financial institutions.
He said the government was currently negotiating with
potential creditors.
"We hope to be able to obtain grants or loans from the
Japanese Overseas Economic Cooperation Fund (OECF), just like we
got for the rehabilitation of the Gresik Unit I power plant," he
said.
The OECF gave the government of Indonesia a grant of $20
million to rehabilitate power plants at Gresik Unit I and II.
A representative from the Japanese Embassy, Koji Hachiyama,
said the Japanese government had a great interest in the
development of power plants in Indonesia.
"We are going to study the possibility of participating in
other projects dealing with electric power here," he said.
(nur/cst)