Indonesia: 35,000 MW Program 41 Percent Complete

Indonesia: 35,000 MW Program 41 Percent Complete

State-owned electricity company PT PLN (Persero) will stick to its plan to
complete the financing of power plant construction projects with a total
capacity of 18,000 MW until the end of the year. I Made Suprateka, PLN
Corporate Communication Unit head, said that the 35,000 MW program is 41
percent complete.

He explained that financing has been secured for 5,000 MW power projects.
"There are still 6,300 MW power plants which financing has not been
concluded. Some lenders in power plant projects are awaiting Guarantee
Letter for Business (Surat Jaminan Kelayakan Usaha) to be issued by the
Finance Ministry."

The PLN says that guarantee for power plants project needs to be issued to
the World Bank, Asian Development Bank, Japan International Cooperation
Agency. KfW Development Bank, AFD (French Development Agency and
International Development Bank. PLN could generate 13 billion US Dollars and
695 million Euros loans for five years of financing.

The PLN encourages private power developers to commence construction phase
despite lack of finacing. Made said developers can use advance payment of 10
percent they already paid to the PLN.

At present 5,501 MW power plants are still in construction phase, 7,775 MW
power plants are in procurement phase, 11,729 MW are in planning and
procurement phase, 64 MW power plants have been operating. Whereas
transmission construction is 49.74 percent complete and substation
construction is 23.75 percent complete.

To boost project achievement, the PLN plans to change the amount of advance
payment to around 5 percent, particularly for power plants with a capacity
of under 100 MW. "The money will be very useful to acquire land or in early
power plant construction," PLN president director Sofyan Basir said.

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Ref:
http://en.tempo.co/read/news/2016/11/02/056816867/PLN:-35,000-MW-Program-41-
Percent-Complete

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com