VIVAnews - Teluk Sirih steam power plant in West Sumatra received a funding commitment from the China Development Bank valuing US$138 million.
The loan will be used for meeting the dollar needs for the 2x112 Megawatt power plant construction.
The managing director of the state electricity company PLN Fahmi Mochtar in Jakarta on Wednesday, June 24 said that the agreement will be signed in July.
He stated that the company will also sign a funding commitment for Adipala power plant valuing US$468 million in addition to the loan for Teluk Sirih power plant.
The director of planning and technology Bambang Praptono stated that PLN worried that the regional banking joined in the Association of Regional Development Banks (ASBANDA) are reluctant of providing loan to the state electricity company.
Nevertheless, PLN was optimistic that ASBANDA will grant the necessary loan to finish the 10,000 Megawatt project. Adipala power plant needs Rp 1.89 trillion, while Teluk Sirih needs Rp 521 billion.
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Translated by: Ariyantri E. Tarman
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