JAKARTA (TheInsiderStories) - Indonesia state-owned power producer, PT Perusahaan Listrik Negara (PLN) continues to accelerate the construction of 35,000 megawatt (MW) by obtain funding fromExport Development Canada (EDC) and the Hungarian Export-Import Bank (HEXIM) with a total loan around US$435 million. The long-term loan with a repayment period of 12 years.
Finance Director PLN Sarwono financing facilities signed with both companies will use to build Mobile Power Plant (MPP) a total of 500 MW, which is part of the 35,000 MW program
Funding from export credit agencies unsecured Indonesian government with interest rates very competitive and so to minimize the risk of fluctuations of fixed interest rate loans are very volatile.
The development of MPP itself is spread over 8 locations: Lampung (4 x 25 MW), Pontianak (4 x 25 MW), Bangka (2 x 25 MW), Riau (3 x 25 MW), Billiton (25 MW), Ampenan (2 x 25 MW), Paya Pasir (3 x 25 MW) and 25 MW Nias. MPP is starting the construction of 500 MW until the operation is managed by a subsidiary of PLN ie PLN Batam.
Selection of these locations based on the conditions that still lack electricity supply and also requires additional power supply due to high electricity growth in the area. MPP is using a plant of General Electric scheme EPC (Engineering Procurement Construction) where the entire plant is expected to enter the stage of COD (Commercial Operation Date) in January 2017.
“With the MPP is expected electricity supply Indonesia can reach up to the islands of corners in Indonesia for the economy in these areas can grow rapidly and can reach out to people who have not yet affordable electricity supply so that the target of electrification ratio 99.7% in 2019 can be achieved, “concluded Sarwono.
MPP is fueled power plants natural gas efficient and environmentally friendly because of its fuel that is clean energy.