PLN Wins $100m Aid Loan to Fix Bali’s Power Crisis

LEGIAN ~ State power company PLN has been offered US$100 million by the Asian Development Bank (ADB) to finance projects to fix the power grid in Java and Bali.

The loan is particularly good news for Bali, where ineffective supply from the Java grid has led to long-term rotational blackouts. The latest series of planned blackouts ended on Thursday after essential maintenance was done on the Gilimanuk power station.

The loan was announced in Jakarta by the ADB Indonesia resident mission infrastructure specialist, Rehan Kausar. He said: “The power grid projects in Java and Bali are aimed at making the power transmission in those two islands efficient.”

The formal proposal of the loan scheme for the Java-Bali power grid will be brought to ABD board of directors meeting to be held Manila in January.

“Should the Indonesian government approve the loan terms proposed by the ADB, the loan would be available shortly after the ADB assembly approves it,” Rehan said.

The ADB would also partly provide another $500 million in loans to finance the Indonesian government’s second phase of mega power plant projects with total capacity of 10,000 MW.

This money would be focused on financing the geothermal power plants in the second phase of large power plant projects across the country.

Of that amount of loan, ADB would contribute around $350 million. The remaining funds would be provided by the clean technology loan programme allocated by international financiers such as World Bank and the World Bank’s deve-lopment bank unit International Finance Corporation (IFC).

Giving these details this week, Rehan said the ADB had already provided around $30 million and $40 million of loans to finance two geothermal power plant projects at Lahendong in Java.

To date, ADB has outlaid a total of $161 million in loans for Indonesian power projects.

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