Four PLN projects will be problematic: Eddie

State electricity company PT Perusahaan Listrik Negara president director Eddie Widiono Suwondho said that there are four projects that will become problematic in future. The four projects are: Cilacap?s coal-fired power plant, the gas-fired power plant in Blocks 3 and 4 of Muara Tawar, Cilegon?s gas-fired plant and the Customer Information System, the Bisnis Indonesia newspaper reported in its Wednesday edition.

Borang?s coal-fired power plant will also have problems.

This was revealed by Eddie while giving clarification about the four projects during a hearing with the House of Representatives? Commission VII on Tuesday night in Jakarta.

In case of Muara Tawar Block 3 and 4 gas-fired plant, the selection and the auction process as well as outsourcing, maintenance and operations will most probably become problems.

The main problem in this plant is the selection of E type, which uses only fuel, instead of gas used type F.

The reason for this, according to Eddie, there was no certainty yet about the gas supply for the Muara Tawar plant at that time.

The selection decision was approved by both the PLN?s Board of Commissioners and the shareholders? general meeting. It was also approved by the Minister of energy and Mineral Resources in 2002.

Besides this, PLN selected Alstom as the supplier of hot parts to the plant in place of Columbia, which offered the cheapest price of US$41.6 million. Alstom offered $72.1 million to supply the hot parts. (*)