State-owned power firm PLN has raised US$435 million in funding to develop gas-fired mobile power plants (MPP).
This is part of the government's goal to procure 35,000 megawatts (MW) of fresh power capacity by 2019.
The company said, the funds, which will be receeived through an export credit agency (ECA) program from Canada and Hungary, will be used to fund eight MPP with total capacity of 500 MW across the archipelago, mainly in areas outside Java with low electrification rates.
PLN finance director Sarwono Sudarto said, "The financing will speed up gas-fired power plants that go into the 35,000 MW program."
A ceremony was held in Jakarta on Friday to signe the agreement between PLN, Export Development Canada (EDC) and the Hungarian Export-Import Bank (HEXIM). The 12-year term loan was received without a state guarantee but with competitive and fixed rates that minimize the risk of interest rate fluctuations.
Sarwono added, "The ECA scheme without a government guarantee is one of the alternatives for PLN financing, apart from bonds issuance, bank loans, as well as credit institutions, both bilateral and multilateral."
This is part of the government's goal to procure 35,000 megawatts (MW) of fresh power capacity by 2019.
The company said, the funds, which will be receeived through an export credit agency (ECA) program from Canada and Hungary, will be used to fund eight MPP with total capacity of 500 MW across the archipelago, mainly in areas outside Java with low electrification rates.
PLN finance director Sarwono Sudarto said, "The financing will speed up gas-fired power plants that go into the 35,000 MW program."
A ceremony was held in Jakarta on Friday to signe the agreement between PLN, Export Development Canada (EDC) and the Hungarian Export-Import Bank (HEXIM). The 12-year term loan was received without a state guarantee but with competitive and fixed rates that minimize the risk of interest rate fluctuations.
Sarwono added, "The ECA scheme without a government guarantee is one of the alternatives for PLN financing, apart from bonds issuance, bank loans, as well as credit institutions, both bilateral and multilateral."