Bidding for new power plants to begin
Thursday, July 20 2006 - 11:44 PM WIB
Djuanda Nugraha Ibrahim, acting president director for state electricity company PT Perusahaan Listrik Negara (PLN), said Thursday that the bidding would involve coal-fired power plant projects in 30 locations outside Java.
?We may open the bidding for outside-Java areas in October,? said Djuanda after attending an unscheduled meeting with Vice President Jusuf Kalla and several ministers to discuss progress in the government?s fast track program to provide an additional power supply of 10,000 megawatts by 2009.
Djuanda said the projects would include between 2,900 MW and 3,100 MW of power for areas in Sumatra, Kalimantan, Maluku, West Nusa Tenggara, East Nusa Tenggara and Papua, and between 6,900 MW and 7,200 MW of power for areas in Java the nation?s center of business, The Jakarta Post reported on Friday.
For Java, the government is already in the process of accepting bidding offers, with some 59 interested investors from Japan, China, South Korea, Europe, India and Malaysia expressing interest.
Djuanda said the government would announce the tender winners for 10 locations across Java in early October.
Several of the investors requested the government provide letters of guarantee the government would take over the project in case a disturbance halted the construction.
During the meeting, Djuanda said the government would consider providing such a facility to all investors and would expedite the constructions, which would be all completed by 2010.
?The government is still considering requests from investors for a guarantee. Several lenders for the projects are also requesting this. It is just to make them feel more secure in doing their business here,? he said.
Since the cancellation of several massive power plant projects during the country?s financial crisis in 1998, investors have been leery of investing in infrastructure projects here. (*)