ADB earmarks $500 million for RI`s mega power program

Antara News, Friday, November 27, 2009 03:12 WIB

Jakarta (ANTARA News) - The Asian Development Bank (ADB) has earmarked US$500 million in loans to speed up the second phase of Indonesia`s program to build power plants with a combined capacity of 10,000 megawatts, an ADB official said.

The ADB loans were intended to finance the construction of geothermal power plants as part of the 10,000 megawatt-capacity power development program, ADB infrastructure specialist for Indonesia Rehan Kausar said here on Thursday.

"We have prepared US$500 million in loans to finance the geothermal projects," he said.

Of the total, US$350 million came from the bank and the remaining US$150 million in the form of clean technology funding from a number of international financial institutions, such as the World Bank, he said.

So far, the Manila-based bank had extended US$161 million in loans for renewable energy projects, including the second and fourth units of the Lahendong geothermal power plant worth US$30 million and US$40 million respectively, he said.

According to state power utility PT Perusahaan Listrik Negara (PLN), the second phase of the 10,000-megawatt power development program called for the construction of steam power plants with a capacity of 4,294 MW, thermal power plants with a capacity of 1,626 MW, geothermal power plants with a capacity of 3,583 MW and hydro power plants with a capacity of 1,174 MW.

The mega program would be implemented after the issuance of relevant presidential regulation which is currently being discussed at the Office of the Coordinating Minister for Economic Affairs.

Kausar said the ADB was also ready to extend US$100 million in loans to improve transmission cables in the interconnection system of the Java-Bali grid.

The bank was waiting for the Indonesian government`s approval, he said.

If the Indonesian government approved the project, the ADB would discuss the proposal at a board of directors meeting scheduled for January next year in Manila, he said.