Consortium J Power-Itochu-Adaro likely to win C. Java IPP power tender

The consortium of J Power-Itochu-PT Adaro Energy Tbk is poised to win the 2 x 1,000 MW coal-fired power plant project in Central Java owned by state owned elecricity firm PT Perusahaan Listrik Negara (PLN) as it has become the only bidder that has passed technical qualification to develop the project, Investor Daily reported.

According to the source, the consortium outbid three other bidders, that is Chinese firm Shenhua, Japanese firm Marubeni Corporation and the consortium of CNTIC ? Guandong Yudean.

?The consortium of J Power-Itochu-PT Adaro Energy will most likely win the tender,? the source said.

PLN?s president director Dahlan Iskan said that the consortium offers the lowest price of all, even lower than the ceiling price target set by the state firm.

Dahlan said that the winner will be announced in mid June and the signing of power purchase agreement will be scheduled in the end of August, this year.

The project will be developed under independent power producer (IPP) and build-own-operate-transfer (BOOT) schemes with PLN obliged to buy the power supplies under a 25-year power purchasing agreement (PPA).

The project will cost about US$3.2 billion to build as part of the public private partnership (PPP). The power plant is expected to start commercial operation date (COD) in 2017. (*)