JAKARTA (TheInsiderStories) - PT Perusahaan Listrik Negara (PLN) will issue up to US$2 billion dollar bond in fourth quarter (Q$) of 2016 to finance the electricity projects of 35,000 megawatt (MW), senior official told The Insider Stories.
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. He said, that the 35,000 MW program is 41 percent complete.
The state-owned power producer preparing capital expenditure Rp70 trillion (US$5.38 billion) in 2017 to build the power plant, transmission and electrification of the outermost regions across the archipelago.
President Director of PLN Sofyan Basyir said, to finance the projects will raises fund from bond issuance, bank loan, capital injection from government and equity. The largest power producer in the country proposed to get capital injection Rp17 trillion in the 2017’s State Budget.
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.