PLN to raise $1 billion in public offering

PLN to raise $1 billion in public offering

JAKARTA (JP): PLN president director Djiteng Marsudi said the
state electricity company expects to raise around US$1 billion
from sales of the company's two subsidiaries's shares to public.

He said in Banda Aceh the two subsidiaries, PT PLN Pembangkit
Jawa Bali I and II, have a total asset of US$5 billion.

He noted PLN has a total asset of US$ 25.5 billion.

"If 20 percent of the amount will be sold to the public, some
US$1 billion would be earned," he was quoted by Antara as saying.

He, however, refused to say when the public offering would be
launched.

Djiteng said the two subsidiaries contribute 80 percent of
PLN's total electricity production in the country.

Marsudi was here to accompany President Soeharto who earlier
inaugurated the electricity distribution network that supplies
2,000 villages in Aceh.

Antara reported that North Sulawesi will soon have a steam
power plant (PLTU) with a capacity of 2 x 55 megawatts.

The plant will be located in Kawangkoan Bawah village,
Minahasa district, North Sulawesi.

The start of the construction work on the Rp 1.2 trillion
(around US$506 million) project took place on Thursday marked by
a first stone-laying ceremony performed by provincial deputy
governor PP Keppel on behalf of the governor, which was witnessed
by shareholders of the project, according to Antara.

Chairman of the board of commissioners of PT Tenaga Listrik
Swasta Amurang Ibrahim Risjadson in his report said the
construction of the project was scheduled to be completed by the
end of 1999 and to be operational by the year 2000.

The steam power plant, to be fueled by coal from East
Kalimantan, will need about 400,000 tons per year.

The electricity from the new power plant will be sold to the
state electricity company PLN under a power purchase agreement
signed previously by PLN and PT Tenaga Listrik Swasta Amurang.

PLN's North and Central Sulawesi regional deputy for planning
Eddy Djatmiko, representing PLN chief director, in his address
said electricity consumption in the region had shown an average
increase of about 13 per cent per year.

The presence of the project is expected to speed up the
region's electrification program and to reduce the role of
diesel-powered generating plants and the use of fuel oil as
primary energy source.