Govt decides to re-tender all GITET III projects
Thursday, November 30 2000 - 03:00 AM WIB
The presidential decree (Keppres) 133/2000 team, established by the government to restructure electricity company PT PLN, decided on Wednesday to re-tender all high-voltage electricity relay stations (GITET) projects phase III.
The team, established under Keppres No. 133/2000, said that the government had been neglecting positive offers from foreign contractors, Siemens AG of Germany and Alstom of France that would respectively build relay stations in Tasikmalaya (West Java) and Kediri (East Java), to reduce the value of the projects.
Meanwhile, the House of Representatives' Commission VIII demanded the government to re-tender both Tasikmalaya and Kediri relay stations, whose value had been marked up by more than 200 percent, compared to similar project to be built in Depok, West Java.
The commission also demanded the government to prosecute all people, including public officials, involved in the Tasikmala and Kediri scams.
"Considering the results of clarification meetings with PLN executives and Finance Minister Prijadi Praptosohardjo, I totally support the government's plan to re-tender all the GITET III projects. And this re-tendering must be processed soon," the commission's chairman Irwan Prajitno said.
Earlier, PLN president Kuntoro Mangkusubroto said that Siemens and Alstom had given positive proposals. If those proposals were taken up, it would bring down the prices of both Tasikmalaya and Kediri projects.
The proposals included the removal of local partners in the projects, and the removal of the requirement for counter purchase that would allow the contractors to buy products with best prices from any country.
The Indonesian Corruption Watch (ICW) also supported the re-tendering of Kediri and Tasikmalaya GITET projects. ICW coordinator Teten Masduki even called on the government to re-tender all 17 GITET III projects.
"The contracts of 17 GITET III projects must be canceled and they must be re-tendered. The cancellation of the contracts must be pursued following earlier graft indications in those projects. Such harsh measures of re-tendering must also be pursued by the Commission VIII for 27 private electricity projects," Tetan said.
According to ICW data, the before value added tax (VAT) value of Tasikmalaya Lot I relay station project reaches US$41.14 million and Rp 15.2 billion, or equivalent with Rp 386.92 billion, which is 283 percent higher than Depok III relay station project.
Tasikmalaya project was won by a consortium of PT Ritra Safitri, PT Citacontrac, and Siemens AG, and it would be financed by Kreditanstalt fur Wiederaufbau (KfW), Frakfurt am Main/Hermes of Germany.
Meanwhile, the before VAT value of Kediri Lot III relay station project reaches US$35.95 million and RP 17.51 billion, or equivalent with Rp 342.29 billion, or 250 percent higher than the Depok project.
The Kediri project was awarded to a consortium of PT Pembangunan Perumahan, PT Indokomas Buana Perkasa and Alsthom T&D, and would be financed by BNP Paribas, Credit Agricole Indosuez of France.
Meanwhile, the before VAT value of Depok III relay station project, won by a consortium of PT Multifab, Mitsubishi Electric and GEC Alsthom, reaches US$410,000, Rp 20 billion and 1.37 million yen, or equivalent with Rp 136.7 billion. (*)