China?s CNTIC and Harbin still winners of 600 MW coal-fired power plant projects

State electricity utility PT Perusahaan Listrik Negara (PLN) sticks to its decision to name two Chinese companies, China National Technical Import & Export Corp. (CNTIC) and Harbin Power, as the winners of the tenders for the construction of the two 600 megawatt (MW) coal-fired power plants despite protests from other bidders.

PLN?s president director, Eddie Widiono, who was responsible for the overall tender process, said Friday that PLN would not change its decision on the winners.

He did not give any reasons why the two Chinese firms had been selected. CNTIC was named the winner of the tender for the construction of the Suralaya Baru power plant in Suralaya, near Merak, Banten, while Harbin was selected as the winner of the tender for the construction of the Paiton Baru power plant in East Java.

In the case of the Suralaya tender, another bidder, the Dongfang-Dalle Energy consortium, officially submitted a letter of protest on Dec. 10, arguing that the tender winner had not given any information on the power-plant specifications. Other bidders also sumbitted a letter of protest to PLN regarding its decision on the Paiton tender.

Another bidder, Japan?s consortium Marubeni, also plans to file an objection to the result of the tender to the auction committee.

"We will give an answer to the bidders' protest soon. After that, we will see the response. If they want to file an objection (to the decision) to a higher level, please do it," Eddie said.

Contract signing is expected to be in January 2007.

The winner of the tender for the construction of Suralaya Baru and Paiton Baru coal-fired power plant projects will be announced next week.

The Suralaya and Paiton power plant projects are part of the government?s 10,000-MW ?crash program?, targeted for completion by 2009. (*)