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Friday, June 03, 2011

INDONESIA : Indonesia gets US$ 890 million World Bank loans

Tendersinfo News, June 1, 2011

Indonesia gets US$ 890 million World Bank loans to support infrastructure projects in the country. The first loan, worth US$ 640 million loan will be allocated for the construction of a pumped storage hydropower plant to support the increasing electricity needs of the nation. The Upper Cisokan Pumped Storage Hydropower project will be the first facility of its kind in Indonesia. The facility will be located near Bandung in west Java.

World Bank senior energy specialist Leiping Wang said, Pumped storage is the only form of technology that allows you to efficiently store large amounts of energy and quickly respond to peak electrical demand. The Upper Cisokan project will make Indonesia one of very few developing countries to have such a power plant. Pumped storage plants generate energy by transferring water from two reservoirs built at different heights - energy is generated by releasing water from the high reservoir to the low reservoir to drive turbines. The water is pumped back to the higher reservoir at off-peak times. US$ 800 million plant will be developed by Indonesia's state-owned electricity company PLN, with the support of World Bank and the proposed facility will have the capacity to generate more than 1000 MW of electricity.

The second loan worth, US$ 250 million, will go towards the development of roads along the Western Sumatra corridor of the nation. The Indonesian Ministry of Public Works will manage the project, which aims to enhance around 716 km of national roads along the Western Sumatra corridor. The project will cover laying new asphalt wearing courses, replacing 194 m of bridges, improving drainage as well as widening the roads where necessary.


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