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PLN secures financing from KfW to fund Kumbih III hydro-power plant

JAKARTA (RambuEnergy.com) – State electricity company PLN has secured loan from Kreditanstalt für Wiederaufbau (KfW) Development Bank of Germany to fund the development of Kumbih III hydro-power plant, located in Subulassalam, Aceh.

The loan agreement was signed by PLN’s Director for Corporate Planning Syofvi Felienty Roekman and Senior Project Manager of KfW Jens Wirth at the PLN head office on Friday (Dec. 15).

The loan is a direct loan deal with no collateral from the government. The PLTA Kumbih III will have installed capacity of 3×15 MW and requires funding of 100 million euro. PLN secured 85 million from KfW with a tenor of 15 years. The remaining funds will come from PLN’s internal cash flow.

The electricity from the hydropower plant will be supplied to the North Sumatera power grid system and is expected to meet growing electricity demand in the north Sumatera island.

Jens Wirth said he hopes the project can be soon materialized so that the public can get the benefit of the project. (*)

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