PT Perusahaan Listrik Negara (PLN) requires $17.25 billion to finance a 9,963 megawatt (MW) power plant, which is the second phase of the company’s 10,000 MW power project. The second phase of the 10,000 MW power projects consists of a 2,616 MW thermal power plant, a 1,440 MW gas power plant, a 4,733 MW geo-thermal power plant and a 1,174 MW hydro-power plant. Of the total projects 4,337 MW are located in Java Island and 5,626 MW are outside Java Island.
The second phase power projects are expected to be operational in 2011-2014 while the first phase ones will begin operations in 2009 – 2011.
PLN President Director Fahmi Mochtar said that about 3,649 MW of the projects would be built by PLN itself at a cost of $3.824 billion.
Most of the projects which consist of 6,314 MW worth US$13.426 billion will be built by independent power producers (IPP), Mochtar, said.
Mochtar said that the funds that would be used by PLN to construct the power projects would come from loans the government gained from international financial institutions.