ECAs to guarantee Indonesian coal-fired plants

(Bloomberg, Jakarta, 14 Nov. 2007) -- PT Perusahaan Listrik Negara, Indonesia's state power company, is seeking a 10 year $1.5 billion loan to build more coal-fired plants, to be guaranteed by the government and covered by China Export & Credit Insurance Corp. (Sinosure). Listrik Negara, which owns and operates about 85 percent of Indonesia's electricity-generating capacity, plans to spend $9 billion from 2006 to 2010 to develop 9,000 megawatts of coal-fired capacity and reduce dependence on oil, with 85 percent coming from export-credit agency secured loans and the rest from bonds. Coal-fired plants are to replace the nation's dependence on oil - coal generated 37% of its electricity as of the end of last year and plans are to generate 66% using coal by 2016, and reduce oil-fired to 5 percent, from 35 percent at the end of last year.