Caltex asked to cancel telecom project

Members of the House of Representatives (DPR) again called on PT Caltex Pacific Indonesia (CPI) to cancel its Dense Wavelength telecommunication project on an alleged unfair pricing in the bidding process of the contract, Antara reported on Friday.

"We also questioned why Caltex did not listen to Pertamina's warnings," Erman Suparno of the PKB faction at the House said. "Pertamina has sent five warning letters asking Caltex to cancel the tender for project but the company ignored the warnings," he added.

Other legislators such as Priyo Budi Santoso of Golkar faction and Hatta Rajasa of Reformation faction also questioned the tender for the construction of the oil giant's telecommunication facility. They said the contract, which had been awarded to PT Surya Karsa Media Formasindo should be cancelled and a new bidding should be opened to ensure fairness.

PT Surya Karsa Media Formasindo had been named as the winner of the contract for the telecommunication project although the company's was higher than those made by other competitors. According to Priyo PT Surya had been allowed to use double bids to enable it win the project. Pertamina had asked the company to cancel the contract due to such price manipulation, but Caltex ignored the warning.

Caltex has denied the charge saying that the tender of the telecommunications project did not break any regulations.

Poedyo Oetomo, a spokesman for the oil giant, said that PT Surya Karsa had been named as the winner of the tender because its bid of US$ 2.83 million was $18,000 cheaper than that made by its main rival PT Asia Karsa.

He acknowledged that PT Surya Karsa had made double bids but he said that one of the bids, which was set at $2.3 million was disqualified because it did not meet the bidding procedures. (*)