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To realize the 10,000MW project, PLN seeking the loans from overseas

China Ekport Import Bank and UK-based bank Barckay are among the foreign banks expressing interest to funding the state-owned power company, PT Perusahaan Listrik Negara (PLN) with 10,000 megawatts (MW) emergency power project. 

Currently, PLN has deal worth Rp. 7.3 trillion or equivalent with US$ 794.77 million with Bank Mega and Bank Bukopin. Bank Mega is set to disburse a total Rp. 4.61 trillion to finance 10 projects, there are consist of: Pelabuhan Ratu (945 MW), Lampung (200 MW), North Sumatra (400 MW), Riau (14 MW), East Nusa Tenggara (14 MW), West Nusa Tenggara (50 MW), Gorontalo (50 MW), North Sulawesi (50 MW), Southeast Sulawesi (20 MW) and Central Kalimantan (120 MW). Bank Bukopin, meanwhile, is set to channel Rp 1.6 trillion toward the construction of 945 MW plant in Teluk Naga, and Rp 1.04 trillion for 630 MW plant in Pacitan.  

Sri Mulyani said that PLN needs some US$ 8.3 billion to meet the 10,000 MW crash program, which is scheduled for completion in 2010. 

To realize the target in 2010, PLN should be try to find out  some alternative financing. With the current economic condition, it much better for PLN to seeking the loans from overseas institutions.  

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