Asam Asam third coal re-tender likely to fail on low price

South Kalimantan unit of state electricity firm PLN said the third re-tender to supply low-rank coal to its Asam Asam 2x65MW power plant is likely to fail again as thus far no bidder has submitted bid.

A company official told Petromindo.Com that bid submission deadline was set on November 3, 2009.

The official said the third re-tender was opened on October 28 after previous bidders declined to accept the ceiling price set by PLN.

?If this tender fails, we will hand over (the tender) to head office,? the official said.

The official said PLN has imposed maximum price of Rp.197,000 per tonne (US$=Rp.9,600) CIF for the coal.

PLN is searching for supplier to provide 25,000 tonnes of 4,200 kcal/kg (AR) coal per month to Asam-Asam for three years. (denny)