Indonesian state-owned electricity company PT Perusahaan Listrik Negara (PT PLN) plans to build the third unit of the Asahan hydro power plant to meet power demand in Sumatra.

Coordinating Minister for Economic Affairs Hatta Radjasa said PLN would build the power plant with a capacity of 2×87 megawatts itself. He said the project will cost an estimated US$420 million using soft loans from Japan Bank for International Cooperation (JBIC).

The loans will have a grace period of 40 years and carry an annual interest rate of 0.7 per cent, he said after a meeting at the vice presidential office here on Monday.

Source : Antara