JAKARTA (TheInsiderStories) - PT Perusahaan Listrik Negara (PLN), an electricity firm own by the government plans to issue global bonds as much as US$1.5 billion in the second quarter of 2017 to finance the electricity projects of 35,000 megawatt (MW).
Beside from bonds issuance, PLN has received a state capital participation of Rp23.6 trillion and a subsidy of Rp10.9 trillion to finance all the projects. The largest power producer in the country proposed to get capital injection Rp17 trillion in the 2017’s State Budget.
According to CEO of PLN Sofyan Basyir, the company is expected to spend Rp170 trillion on power plants, transmission and distribution networks in the next five years. PLN preparing capital expenditure Rp70 trillion in 2017 to build the power plant, transmission and electrification of the outermost regions across the archipelago.
He added, PLN is expected the tender of 35,000 MW will finished this year and the company will develop 10,000 MW of the total project. Currently, Sofyan said, that the 35,000 MW program is 41 percent complete.
Sofyan stressed, PLN could generate $13 billion and 695 million Euros loans for five years of financing from World Bank, Asian Development Bank, Japan International Cooperation Agency. KfW Development Bank, AFD (French Development Agency and International Development Bank.
This year, PLN plan to complete the financing of power plant construction projects with a total capacity of 18,000 MW. Until now, He explained, that financing has been secured for 5,000 MW power projects.
At present 5,501 MW power plants are still in construction phase, 7,775 MW power plants are in procurement phase, 11,729 MW are in planning and procurement phase, 64 MW power plants have been operating. Whereas transmission construction is 49.74 percent complete and substation construction is 23.75 percent complete.
To boost project achievement, the PLN plans to change the amount of advance payment to around 5 percent, particularly for power plants with a capacity of under 100 MW. At the end, He said, through the expansion, PLN sees the power supply to the user will increase 8 percent from this year target.
Maintained the 35,000 MW projects
Meanwhile, Cabinet Secretary Pramono Anung said the government maintains its target to build new power plants with a total capacity of 35,000 megawatts until 2019 as set in the National Energy General Plan. Earlier President Jokowi said the 35,000 MW electricity program is not only target but also requirement.
He said even PLN and the Energy and Mineral Resources Ministry believe the realization would not be more than 22,000 MW , the president continued to maintain the 35,000 MW electricity target. Pramono also said that president has asked the ministry and National Energy Council (DEN) to prepare a blue print that Indonesia would not depend only on fossil energy but would begin to use renewable energy.
