Balaraja fuel depot project needs to be re-tendered soon
Monday, November 27 2000 - 04:00 AM WIB
State oil firm Pertamina's storage and marketing unit III for Jakarta and West Java has urged the government and Pertamina to re-tender the Balaraja "Satellite A" fuel depot to support fuel supplies to Jakarta and its surrounding areas.
The head of Pertamina's storage and marketing unit III, Tuty Anngrahini, said that fuel for Jakarta was currently supplied from Pertamina's storage in Plumpang, and if there is something wrong with Plumpang there would be problems in supplying fuels to Jakarta.
"When the Satellite A depot is re-tendered and built, we will have buffer stocks whenever there is a problem with fuel stocks for Jakarta and the greater areas," she said.
As for Bandung, Tuty said, Pertamina had two fuel buffer storage facilities, namely Ujung Berung and Padalarang, and therefore, there would be no problems to supply fuels to the capital of West Java.
Tuty noted that it was critical for Pertamina and the government to build a supporting depot for Jakarta, such as Balaraja depot, because whenever there was problems with fuels supply to Plumpang like the one happened last August, Pertamina would still be able to supply fuels to Jakarta from Balaraja.
"It will be better to re-tender the Satellite A depot because the infrastructure has been built, it only needs finishing touches," she noted.
Pertamina has canceled a contract with PT Pandan Wangi, an affiliate company to PT Panutan Selaras, to build the Balaraja depot because of graft allegation due to the company's link to the former president Soeharto family. Panutan Selaras is allegedly owned by or affiliated to Soeharto's eldest son Sigit Hardjojudanto.
And PT Van Der Horst (VDH) Teguh Sakti has expressed its readiness to continue the construction of Balaraja depot with a total cost of US$99 million. VDH Teguh Sakti proposed to Pertamina to use a build and rent scheme, in which the company builds the depot and Pertamina would rent it. But there is not yet any agreement between the two parties.
Director General of Oil and Gas Rachmat Sudibyo said that the realization of the Balaraja depot must involve private sector, but he would let Pertamina to decide what kind of scheme it would choose, whether build and transfer or build, operate and transfer or build operate and owned scheme. (*)