BPK finds PLN contractors ?problematic,? firm told to tighten selection process
Wednesday, June 1 2016 - 01:19 AM WIB
Bisnis Indonesia quoted Rizal as saying Wednesday that PLN must prioritize quality over price in selecting contractors.
The statement was made following the latest findings by the Supreme Audit Agency (BPK) that a total of 166 contractors of PLN involved in the first phase fast track program (FTP I) of developing 10,000 MW power plants during the previous administration of president Susilo Bambang Yudhoyono were ?problematic.?
Rizal said that many of the power generating units made in China under the FTP I program were not in accordance with the contracts and some had stalled. ?(Generating units under) FTP I are mostly from China. Many were problematic (in terms of) maintenance, and the capacity not in accordance with the contract,? he said.
PLN Corporate Planning Director Nicke Widyawati dismissed suggestion that the company had not put priority on quality in selecting contractors. She pointed out that contractors that would build the power plants came from countries which are members of the Organization for Economic Cooperation and Development (OECD).
Nicke added that the power plant projects are not dominated by technology from China, pointing out that of the 17,800 MW, 41.9 percent used technology from Japan, 26 percent from China, and th rest from Europe, US and other countries.
Elsewhere, BPK said in its report that the FTP 1 program has caused the state to suffer Rp 554 billion in losses.
BPK senior official Rizal Djalil said that of the 10,000 MW target, only 7,919 MW had been realized.
He said that 166 contractors of PLN were problematic as some relation stations could not be utilized, and construction of transmission lines could not be completed due to land acquisition problem. (*)