Govt approves fast-track power plant program

The government has approved the fast-track construction of 19 coal-fired power projects worth US$8 billion over the next four years, with some of the projects to be excluded from a lengthy tendering process, The Jakarta Post reported in its Wednesday edition.

"The crash-start program is needed to speed up power plant construction. Direct appointments are allowed under an emergency situation based on an existing government regulation,? Energy and Mineral Resources Minister Purnomo Yusgiantoro said Tuesday.

Under its ?crash start program?, the government has agreed to directly appoint several local contractors to quickly develop some of the plants through a power purchase agreement. The government hopes the plants will help prevent power shortages and cut the nation?s use of expensive oil-based fuels.

?Usually, directly appointed contractors have sufficient funds to construct power plants under power purchase agreements (PPAs) with PLN. If the funds come from PLN, then they should be subject to a tender process,? said Purnomo.

Presidential Regulation No. 8/2006 requires open bidding for all government procurement projects valued at more than Rp 50 million (US$5,344), exempting those concerning national security and emergency situations.

Although the government earlier said the projects would be offered through open tendering process, its new insistence on direct appointments is fueling observers? fears of possible graft in the deals. (*)

No	Power plants	Capacity (MW)	Operation date	Contractors
1	Jeneponto	2 x 100	2009	Bosowa Energi
2	Embalut	2 x 25	2007	Cahaya Fajar kaltim
3	Sengeli	1 x 27.5	2007/2008	Arthindo Utama
4	Cirebon	1 x 600	2010	Marubeni, Komipo, Sam Tan, Tripatra
5	Mulut Tambang	2 x 100	2008/2009	Bukit Asam, PJB, Inovative
6	Mulut Tambang II	2 x 25	2008/2009	Ridlatama
7	Tanjung Pinang	2 x 10	2008/2009	Medco, Menamas, Barata
8	Lombok	2 x 25	2008/2009	Maser, Meta Epsi
9	Pontianak	2 x 25	2008/2009	Medco, Maser
10	Palu	2 x 10	2008/2009	Powerindo consortium
11	Bangka	2 x 10	2008/2009	Total Orbit, Sutraco, YPK
12	Belitung	2 x 7	2008/2009	Total Orbit
13	Jayapura	2 x 10	2008/2009	Menamas, Permata, PLN
14	Labuan	2 x 7	2008/2009	Cogindo consortium
15	Nunukan	2 x 7	2008/2009	Powerindo consortium
16	Ketapang	2 x 7	2008/2009	Mahakaya consortium
17	Tanjung Balai	2 x 7	2008/2009	Listrik Nusantara, Shandong
18	Gorontalo	2 x 7	2008/2009	Smart Mitra, Walinusa
19	Bima	2 x 7	2008/2009	Arthiduta, Trakindo, Sutraco, YPK