PLN signed commitment loan from Poland bank in Warsaw (22/2) (Photo: Perusahaan Listrik Negara)

JAKARTA (TheInsiderStories) –  State electric company PT Perusahaan Listrik Negara (PLN) has secured €80 million (approx. Rp1.4 trillion) loan from the Gospodarstwa Krajowego (BGK) Bank of Poland, to finance the construction of power plants in Lombok, West Nusa Tenggara.

The move is part of a wider effort to fulfill the government’s 35,000-megawatt (MW) electricity program by 2019.

As a part of the cooperation, a Polish power generator company Rafako will be the development contractor. Rafako is a Warsaw based integrated electric company, established in 1949.  The cooperation contracts of the three entities are conducted in Warsaw on Wednesday (21/2).

In an official statement, Rafako said it would build two power plants with a capacity of 50 Megawatts (MW) each.

The company’s investment portion on the project is 35 percent or equivalent to 950 million zloty.

In an employment contract with the Indonesian side, the financing package is jointly prepared by BGK and Korporacja Ubezpieczeń Kredytów Eksportowych (KUKE). KUKE also provides Rafako guarantee contract implementation.

The construction of the first block will take 36 months while the second block will take at least 39 months.

PLN needs at least US$5 billion this year to finance its operational and investment portfolio. PLN is estimated to have assets of Rp1,300 trillion.