POWER XIV

closed

The Fourteenth Power Project supports the twin objectives of the expansion of power supply facilities in Indonesia to met the demand and the development of alternate sources in the energy sector. It includes the construction of two 400 MW coal-fired units at the Suralaya steam power plant in West Java, and expansion of the distribution facilities in East and Central Java and in the Jabotabek area. About 400,000 residential consumers in urban and rural areas will benefit from this supply. Simultaneously, the project will address the institutional development needs of PLN. Consulting services for hydropower and transmission development are also included. Possible risks include the risk of delay in the Suralaya project due to a delay in finalizing the critical steam generator contract or constraints on local funds. Suitable agreements have been reached with the government and PLN to reduce these risks. There is no unusual risk associated with the distribution component of the project.