Completion of PLTU Rembang pending conclusion of punch-lists meeting

By Romel S. Gurky

Zelan Berhad of Malaysia, the contractor for coal fired power plant (PLTU) Rembang owned by state electricity company PT PLN, said the completion and the taking over of the power plant by PLN is pending results of a meeting on the outstanding punch-lists and matters related to provision of spare parts.

?The completion and taking over of Unit 2 will be done upon the conclusion of the aforementioned punch-lists and spare parts, which is expected to take place within one and a half months from now,? Zelan said in a statement.

Punch-list is a check list of all items on a construction project that are unfinished and therefore require replacement or additional work to achieve an acceptable level of workmanship.

PLN had stated last year that the completion and taking over of Unit 1 of the power plant was subject to the outstanding punch-lists and spare parts. On February 3, 2012 PLN issued a statement saying that commercial operation date of both unit 1 and unit 2 of the 400-megawatt Rembang coal fired power plant in Central Java had been achieved on December 10, 2011.

The design, engineering, procurement, construction and commisioning of the project have been undertaken by a consortium led by Zelan Holdings (M) Sdn. Bhd. (ZHSB), a wholly owned subsidiary of Zeland Berhad (ZB). ZB and ZHSB collectively hold 70 percent participating interests in the Consortium while PT Priamanaya Djan International holds the remaining 30 percent.

Zelan said PLN and the consortium are in the process of negotiating a global settlement which includes the award of time extension for the completion date of the project. A further announcement will be made to Bursa Malaysia upon the conclusion of the global settlement agreement.

Editing by Roffie Kurniawan