Govt may give incentives to power contractors
Wednesday, July 11 2007 - 03:06 AM WIB
Contractors involved in the construction of power plants built under the government's 10,000 MW fast track program may receive financial incentives if they could complete the projects ahead of their original schedules.
Director General of Electricity at the Ministry of Energy and Mineral Resources J. Purwono said in Jakarta on Tuesday that the state-owned electricity company PLN was currently proposing the financial incentives to the Office of State Minister of State Enterprises.
"The incentives could be in the form of cash award. It means that contractors who complete the power projects built under the crash program will receive a cash bonus," he said.
He said that if the power plants to be built under the crash program could be operated a day ahead of schedule, PLN could save up to Rp 100 billion per day. "Between 10 percent to 20 percent of the funds could be given to contractors as incentives," he said.
Purwono added that the Office of State Minister of State Enterprises principally has no reservations to the proposal. "However, we still need to talk about the amount of the financial incentives," Purwono said. (Godang)