ABB offers lowest price for 500 KV power project
Tuesday, August 22 2000 - 03:00 AM WIB
Asea Brown Bouveri (ABB) has offered the lowest price in the re-tender of the 500 KV electricity transmission network connecting Klaten in Central Java and Tasikmalaya in West Java, according to a source who declined to be named.
The source said that ABB's bid was around 25 percent lower than the bidding price made by PT Bukaka Teknik Utama, which won the project during the first tender process.
The source added that state-owned electricity company PLN would report the result of the re-tender process to the Coordinating Minister for Economy, Finance and Industry.
The government via the office of the Coordinating Minister for Economy, Finance and Industry has canceled the first tender result, which was won by Bukaka on grounds of possible collusion and nepotism practices.
Bukaka then filed a legal suit.
The source said that if the court decided later on that the project must be given to Bukaka, the government wanted to renegotiate the price. Bukaka initially offered a price of US$75 million. (R. Amoros)