PLN Get Financial Injections of US$ 435 Million Through ECA Scheme

JAKARTA - The funding from financial institutions become one of the project financing solutions to encourage the construction of 35,000 MW (Megawatt) power plant. This is used by PT Perusahaan Listrik Negara (PLN) (Persero) to build a power plant PLTG Mobile/Mobile Power Plant (MPP) a total of 500 Megawatts (MW), which is part of the 35,000 MW program.

The project funding comes from financial institutions Export Development Canada (EDC) and the Hungarian Export-Import Bank (HEXIM). The two countries have made loans worth US $ 435 million or equivalent to Rp 5,65 trillion (assuming rupiah Rp 13,000 per US dollar). Finance Director PLN Sarwono said, the funding for the 500 MW MPP project using Export Credit Agency (ECA) scheme which without warranty of Government of Indonesia with a competitive interest rate and fixed to minimize the risk of fluctuations in loan interest rates were very volatile.

"This loan is a long-term loan with a repayment period of 12 years," said Sarwono, as reported from Kontan.co.id, today (12/05/2016).

ECA funding scheme without government guarantee is one alternative financing by PLN in addition to its loan portfolio which can be obtained from the bond market or financing from banking institutions and agencies both bilateral and multilateral creditors. According to Sarwono, the funding from both the creditor to 35,000 MW program is proof of PNL commitment in an attempt to resolve the task of providing electricity for the people in the region which are still experiencing a shortage of supply.

"The one thing that also important is PLN as a development agent supports the provision of reliable electricity supply to support demand for electricity as a driver of regional and national economic growth," said Sarwono.

The development of Mobile Power Plant is spread over 8 locations: Lampung (4X25 MW), Pontianak (4X25 MW), Bangka (2x25 MW), Riau (3x25 MW), Billiton (25 MW), Ampenan (2x25 MW), Paya Pasir (3x25 MW) and Nias of 25 MW.