As part of its objectives to help in developing Asia Pacific nations, the Asian Development Bank has approved a $600 million loan to Indonesia, for its electricity project.
The approved funding will be used to carry out Indonesia’s state electricity corporation, a major power transmission and distribution system in Sumatra.
This will enhance its existing 150 kilovolt transmission lines, see extension to its substations and upgrade its equipment’s including switchgears.
With recent blackouts experienced in both Sumatra and Java as results of deteriorating system reliability and stability, Unit Head for Project Administration in ADB’s Southeast Asia Department, Rehan Kausar, says this assistance will help to deliver sufficient and reliable electricity supply to Sumatra.
Perusahaan Listrik Negara will carry out this development project. The loan will support a portion of PLN’s upgrade and expansion investment in Sumatra from 2015 to 2019.
With the government’s plan to achieving universal access to electricity by 2024, the assistance will help Sumatra achieve 90 pe rcent electrification rate from its current rate of 84 pe rcent, and support the government achieves its future plan.
The assistance is part of a ADB’s larger medium term package support to strengthen the country’s electricity to also assist Java-Bali and the Eastern Indonesia regions between the years 2016 to 2019.