ADB Lends RI US$224 Million For Electricity Instalations In Bali

Jakarta, Dec 4 (Antara) - The Asian Development Bank (ADB) has lent Indonesia US$ 224 million for electricity installations on the Bali Island, which will help meet the electricity needs of the tourism sector. "The electricity supply will push industry and other commercial sectors` growth, particularly related to tourism," ADB Senior Energy Specialist of Southeast Asia Department Aruna Wanniachchi said on Wednesday. Till date, electrification in Bali has been pegged at 69 percent, of which 46 percent is dominated by the commercial sector, while the State Electricity Company (PLN) still depends on a diesel power plant, which costs more. According to the master plan, the electricity installations in Bali will boost electricity delivery through 220 kilometer-long grids and a create 1,500 megawatts (MW) of capacity on the Java Island. ADB`s project will also develop 500/150 kilovolt substations in East Java for electricity supply and build new 500/150 kilovolt substations in Antosari, Bali, to receive electricity delivery, as well as upgrade 11 old 150/20 kilovolt substations` capacity. Currently, the Java-Bali grids are connected through two 150 kilovolt submarine cables, which have a 200 megawatt capacity. PLN has been building two addition cables to add a 200 MW capacity by 2014. Wanniachchi stated that ADB funds could be used to boost economic growth for Bali`s four million-strong population, of which 20 percent fall below the national poverty line. "This infrastructure project will also generate new employment for the locals around the site," he added. Besides ADB, a project for infrastructure development in Bali worth US$ 410 million was also financed with a US$ 25 million loan from the ASEAN Infrastructure Fund (AIF) and US$ 162 million allocated from the Indonesian government`s budget.