Indonesian power plant granted Finnish export credit financing

28 January 2014

Indonesia's national electric utility PT PLN has signed two 12-year term loan facilities for €160 million with Standard Chartered Bank to finance the construction of two new power plants.

The two power plants will have a total output of 339 MW and will be powered by a total of 35 Wärtsilä 34SG gas fired engines. Finnvera, the Finnish export credit agency (ECA) owned by the State of Finland, issued export credit guarantees for the loan facilities while Finnish Export Credit, a subsidiary of Finnvera, provides the funding for both projects.

"PLN is committed to a programme of investment in the Indonesian power sector in order to support economic development in the country and will continue to develop its investment program to increase the capacity and reliability to provide a better service to the customers,"said Nur Pamudji, President Director of PLN. "PLN aims to reduce its reliance on fuel oil and improve its fuel mix to decrease the production cost thereby reducing the subsidy."

The 184 MW Arun power plant will be powered by 19 Wärtsilä 34SG engines running on liquefied natural gas (LNG). The plant, which is to be built in Lhokseumawe in Aceh Special District in northern Sumatra, will be the largest gas engine based peaking power plant in Indonesia. The electricity produced will be used to ensure stable output from the grid.
 
The Bangkanai power plant is a 155 MW gas engine based plant. Wärtsilä will supply 16 Wärtsilä 34SG engines to the plant, which will be located in Bangkanai in Central Kalimantan on the island of Borneo. It will produce electricity for the Kalimantan grid.

 



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