PLN, IPP to Spend $97.1 billion for Developing 55,484 MW Electricity Capacity

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Tuesday, 07 September 2010 11:11

State utility company PT Perusahaan Listrik Negara (PLN) and independent power producer (IPP) will spend US$97.1 billion funds, or US$9.7 billion per year, for developing 55,484 megawatt (MW) national electricity capacity within next ten years.

Nasri Sebayang, PLN's technology and planning director, said in Monday that of total spending, US$70.6 billion will be used for building power plants, US$15.19 billion for building transmission and US$11.27 billion for distribution cost.

He said the investment is only spent for engeneering, procurement and construction (EPC), excluding interest during construction (IDC), financing cost and tax.

"Of total investment, IPP will cover around 30-40% of investment while the rest will be derived from PLN as well as the government," Nasri said, noting IPP will build 23,525 megawatt while PLN to build 31,958 megawatt of electricity power capacity.

He said by targeting 8% margin of investment, PLN will only enable to contribute 15% of total investment spending while the major 85% will be covered by the state budget as well as loans.

Nasri said PLN will seek some loans such as borrowings from government, foreign debts (export credits), loans from Asian Development Bank (ADB), World Bank and Japan International Cooperation Agency (JICA).

Investor Daily reported on Tuesday that PT Bank Mega Tbk had committed to provide Rp6 trillion loan to PLN.

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