PLN will utilize the CEXIM loans for building of thermal power station (PLTU) Pelabuhan Ratu with a 2×10 MW capacity and PLTU Aceh with a 2×10 MW capacity, while the BOC loans will be used for building PLTU Teluk Naga with a 3×315 MW capacity.
Sri Mulyani Indrawati, finance minister, stated that the loans were required to expedite the building of the power plants to fulfill the rising electrical power demand.
She said “The loans are the significant achievement of the PLN`s fast track program.”
The loans represent 85% of the overall dollar funds required to build PLTU Pelabuhan Ratu which will cost nearly $481 million, PLTU Aceh roughly $124 million, and PLTU Teluk Naga nearly $455 million.
The CEXIM has granted 15 year loans that have a grace period of 3 years while the loans from BOC are payable in 13 years and have a grace period of 3 years. The LIBOR-based loans have extended tenor compared to the loans given at the commercial market.
Domestic banks will also provide finances for the three power stations. Local banks include Bank Bukopin for PLTU Teluk Naga, the Association of Regional Development Banks (ASBANDA) for PLTU Aceh and Bank Mega for PLTU Pelabuhan Ratu.
