ID :
26731
Sun, 10/26/2008 - 23:49
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Shortlink :
http://m.oananews.org//node/26731
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CHINESE INVESTORS READY TO FINANCE POWER PROJECTS IN INDONESIA
Jakarta, Oct 26 (ANTARA) - China Exim Bank and Bank of China have expressed their intention to help finance the construction of Indonesia's second phase power project, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said.
"We met with them yesterday and they expressed readiness to provide the funds for realization of the power project," the minister said after attending a function observing National Electricity Day here on Sunday.
The minister said for the construction of electric infrastructure, Indonesia would adopt the Independent Power Producers (IPP)'s system. "So, the first privately run power project namely the 10,000 megawatts (MW)project, is developed with funds from China," he said.
He said that the second stage power project will be realized by the IPP system. "The president agreed to the scheme that we had proposed, namely the power project run by private companies," he said.
Yusgiantoro said that President Susilo Bambang Yudhoyono and his Chinese counterpart Hu Jin Tao had met in Beijing to discuss economic cooperation between the two countries.
The visit of the president and his ministers to China was to discuss economic cooperation, including in the energy sector and the Tangguh project, because China has large foreign exchange reserves, reaching over US$2 trillion, the minister said
He said that from the capital aspect, China was strong so that Indonesia encouraged it to make an investment in Indonesia. It would be up to China whether it would invest by providing a loan concession or otherwise.
"In the past, Indonesia once obtained a loan concession worth US$400 million which was later added with another US$700 million soft loan, particularly for infrastructure projects" he added.
"We met with them yesterday and they expressed readiness to provide the funds for realization of the power project," the minister said after attending a function observing National Electricity Day here on Sunday.
The minister said for the construction of electric infrastructure, Indonesia would adopt the Independent Power Producers (IPP)'s system. "So, the first privately run power project namely the 10,000 megawatts (MW)project, is developed with funds from China," he said.
He said that the second stage power project will be realized by the IPP system. "The president agreed to the scheme that we had proposed, namely the power project run by private companies," he said.
Yusgiantoro said that President Susilo Bambang Yudhoyono and his Chinese counterpart Hu Jin Tao had met in Beijing to discuss economic cooperation between the two countries.
The visit of the president and his ministers to China was to discuss economic cooperation, including in the energy sector and the Tangguh project, because China has large foreign exchange reserves, reaching over US$2 trillion, the minister said
He said that from the capital aspect, China was strong so that Indonesia encouraged it to make an investment in Indonesia. It would be up to China whether it would invest by providing a loan concession or otherwise.
"In the past, Indonesia once obtained a loan concession worth US$400 million which was later added with another US$700 million soft loan, particularly for infrastructure projects" he added.
