Wednesday, February 10, 2010

November 26, 2009 18:40 PM

ADB Allocates US$100 Million Loan To Fix Java-Bali Power Grid

JAKARTA, Nov 26 (Bernama) -- The Asian Development Bank (ADB) has allocated some US$100 million to finance the projects to fix the power grid in Indonesia's key islands of Java and Bali, China's Xinhua news agency cited an ADB Indonesia Resident Mission Infrastructure Specialist Rehan Kausar said here on Thursday.

"The power grid projects in Java and Bali are aimed at making the power transmission in those two island efficient," Rehan was quoted by the Detik.com as saying.

Rehan said that the proposal of the loan scheme for Java-Bali power grid would be brought to ABD Board of Directors assembly scheduled in Manila, January next year.

"Should the Indonesian government approves the loan terms proposed by the ADB, the loan would be immediately distributed to Indonesian government shortly after the ADB assembly approved the loan proposal," Rehan said.

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

The loan would particularly be used to finance the geothermal power plants in the second phase mega power plant projects across the country.

Of that amount of loan, ADB would contribute some US$350 million. The remaining funds would be provided by Clean Technology Loan programme allocated by international financiers such as World Bank and the WB's development bank unit International Finance Corporation (IFC), the ADB senior official in Indonesia said.

According to Rehan, the ADB had already channelled some US$30 million and US$40 million of loans to finance Indonesia's geothermal power plant projects of Lahendong Unit 2 and 4 respectively.

As of now, the ADB has channelled some US$161 million of loans for Indonesia power projects, Rehan said.

-- BERNAMA

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