Chinese govt won't support its firms to build power plants
Tuesday, January 23 2007 - 01:31 AM WIB
This was conveyed by China's Chambers of Commerce and Industry, Bank of China, China Export Import Bank and several representatives from Chinese commercial banks during a meeting with state electricity firm PT Perusahaan Listrik Negara (PLN) in Jakarta on Monday
?We have decided not to support Sinomach and Chengda. Likewise, the Chinese government and investors will not support Sinomach and Chengda. We will take legal action against them,? the notice, whose copy was obtained by reporters on Monday, said.
China's Chambers of Commerce and Industry said that Sinomach and Chengda have violated its agreement on the coal-fired power plants' tender in Indonesia and also ignored its suggestion. Both also blocked other companies to compete fairly during the tender process.
It also said both companies have violated the Law No. 282/2001 regarding export procedures and procedure for issuing guarantee for exports. They also violated the Law No. 660/2004, an emergency law of the association, regarding the management of international cooperation.
This harsh decision will also be applicable to 600 MW Paiton, Suralaya coal-fired power projects
As per the terms of the project, 85 percent of the total costs to build power plant must be provided by the contractor. The project is scheduled to be completed by middle of 2009.
On Jan 19, 2006, PLN said that consortium China National Technical Import and Export Corp (CNTIC) which has won the tender for the Suralaya power plant project and consortium Harbin Power Engineering, a winner of tender for Paiton power plant project, will sign a contract ten days after the signing of the LoI.
As for coal-fired power plant construction project with 300-400 MW, PLN has selected consortium Chengda Engineering - PT Truba Jurong as a winner of the tender for Labuhan coal-fired power plant construction project in Banten. The consortium offers power price of Rp 386,20 per kWh.
Meanwhile, consortium China National Machinery Equipment Corp (Sinomach) ? China National Electric Equipment Corp (CNEEC) ? PT Penta Adi Samudra have been selected as a winner of Indramayu coal-fired power plant construction project. The consortium offers the power price of Rp 403,63 per kWh.
Regarding the Tanjung Awar-Awar coal-fired power plant construction project, PLN is still waiting for the conformation from the consortium (China National Machinery Equipment Corp (Sinomach) ? China National Electric Equipment Corp (CNEEC) ? PT Penta Adi Samudra) about their readiness to carry out two power plant construction projects in two different locations. (*)