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ADB, AFD extend $100 million loans to Indonesia for power project
The ADB Board of Directors said in a press statement the Manila-based bank Tuesday approved a loan of $50 million for the Java-Bali Electricity Distribution Performance Improvement Project.
The AFD meanwhile agrees to provide a cofinancing loan of the same amount to be administered by the ADB.
The project is expected to be able to rehabilitate the overburdened distribution network of the two islands and support the introduction of energy efficient compact fluorescent lamps and light emitting diodes, the statement said.
In addition, the project will also support state power utility PLN’s plan to invest $1.2 billion in the efficient distribution sector between 2010 and 2014.
The project will reduce carbon dioxide emissions from the power sector by 330,000 tonnes per year and allow the substantial energy savings of 200 megawatts of equivalent distribution system capacity, Sohail Hasnie, Principal Energy Specialist in ADB’s Southeast Asia Department, said.
As a result, it will enable PLN to connect about 1.2 million additional customers to the Java-Bali network, Hasnie said.
The ADB loan will be payable in 25 years including a grace period of five years with interest determined according to its LIBOR-based lending facility.
Meanwhile, the AFD loan will be payable in 15 years including a grace period of five years with interest set according to the Euro Interbank Offered Rate.