REPUBLIKA.CO.ID, JAKARTA -- PLN obtained direct loans of 600 million US dollars or equivalent to Rp 8.3 trillion from Asian Development Bank (ADB). Director of Corporate Planning of PLN, Nicke Widyawati, explained the loans woud be used for development of transmission and distribution networks in Sumatra with government guarantees.
Document Delivery on Provision of Government Guarantees for the loans was conducted by Minister of Finance Bambang Brodjonegoro to Director of Corporate Planning of PLN Nicke Widyawati, in Dhanapala Building, Ministry of Finance, on Monday (7/12).
Nicke added, PLN would use the loans to develop and strengthen reliability of electricity system in Sumatra. It was also to expand penetration of electric power networks in supporting implementation of development program of 35,000 MW power plant.
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The scope of the program included the construction of High Voltage Networks along 19,305 kilometers circuits (kms), Medium Voltage Networks along 18,200 kms, Low Voltage Network along 19,300 kms, and a transformer of 6,987 Mega Volt Ampere (MVA).
"The granting of government guarantees on direct lending is very helpful for PLN in realizing the program of 35,000 MW. The loans will be used to build transmission and distribution networks in Sumatra, so that it can increase the electrification ratio" Nicke said, Monday (7/12).
Furthermore, Nicke explained the program of 35,000 MW required transmission and distribution network infrastructure for the supply of electricity to all customers. Direct loans scheme with government guarantee was a breakthrough to address funding needs for PLN in building transmission and distribution infrastructure.
It was the first in Indonesia and the first in the world for energy sector. After in Sumatra, PLN and ADB planned to extend the electrical system to the Eastern Indonesia, Central Indonesia, and Java-Bali.
Thus, gradually PLN could provide better service in terms of quality and quantity. The initial project would last for 5 years ie 2015-2019 and the performance indicators would be monitored to determine the Result-Based Lending.
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