Government Comes To PLN’s Rescue With New Rule
Government Comes To PLN’s Rescue With New Rule The government has come to the rescue of PLN with the issuance of a new regulation that gives a guarantee to the company’s projects, including those under the grand 35,000-megawatt (MW) electricity program. The regulation came in the form of a finance minister’s regulation, that was issued on Aug. 24. It gives two government guarantees for several projects, namely the 35,000 MW program, the construction of 46,000 kilometers of transmission lines and other supporting infrastructure. The first guarantee is a loan guarantee, to be given to financial institutions that provide financing to the state-owned PLN as a loan repayment assurance. The second guarantee is a business feasibility guarantee, to be given to independent power producers (IPPs) that partner with PLN. It is to provide an assurance that PLN has the financial capacity to purchase the power produced by the IPPs according to their agreed contracts. Robert Pak ...