PLN to get $93.5m from China for power plant
PLN to get $93.5m from China for power plant
Leony Aurora , The Jakarta Post, Jakarta
State power firm PT Perusahaan Listrik Negara will get US$93.5
million in loans from China to build a coal-fired power plant in
West Kalimantan, a company executive says.
The loan agreement was concluded during President Susilo
Bambang Yudhoyono's recent visit to China, PLN's director of
power plants and primary energy generation, Ali Herman Ibrahim,
said on Monday.
The loan would allow the construction of a power plant with a
total capacity of 110 megawatts (MW) -- comprising two units of
55 MW each -- in Parit Baru in West Kalimantan, he said on the
sidelines of an energy seminar.
"We have not signed the official agreement yet, so we don't
know yet the tenure and loan terms," said Ali.
"Usually we get 30 years (for maturity) and a four-year grace
period," he added.
During the visit, Indonesia and China also signed the heads of
an agreement to build a 2,400 MW power plant, comprising four
units with a capacity of 600 MW each, in Bangko Tengah in the
coal-rich province of South Sumatra.
"The electricity will be sent to Java as Sumatra's network
cannot sustain such a large amount of power," said PLN's
president director Eddie Widiono.
The mine-head plant will be majority owned by China Hua Dian
Corpoation, with a 55 percent stake. Local companies PLN, coal
producer PT Tambang Batubara Batu Asam, and PT Indika Inti Energi
will own the other 45 percent, said Eddie.
It is estimated that the project will cost $2.1 billion, with
financing coming from the China Exim Bank and China Development
Bank.
"The electricity will be sold at 3.5 U.S. cents per kilowatt
hour," said Eddie.
To provide additional supply to South Sumatra, PLN would also
build three other mine-head power plants with a capacity of 100
MW each, he added.
"We expect them to start operating in 2008 or 2009," said
Eddie.
Stalled development of power generating capacity since the
economic crisis hit in 1997, and steadily increasing demand amid
an improving economy have resulted in a critical situation, with
generating capacity barely keeping pace with demand.
PLN has estimated that power demand in the network serving
densely populated Java and Bali islands at peak time could reach
15,245 MW in October, leaving excess supply at only 120 MW as
power supply declines due to the dry season.
Although the Java-Bali network has installed capacity of
19,615 MW, real capacity hovers at around 15,500 MW, while
minimum reserve capacity should be at least 1,290 MW.
Three power plants in Java, with a combined capacity of nearly
2,000 MW, are expected to come on stream between the end of this
year and the first quarter of 2006.