Govt re-tenders GITET Tasikmalaya project

The government finally decided to re-tender high-voltage 500 kilovolt electricity relay station (GITET) in Tasikmalaya, West Java, following allegations of more than 200 percent mark-up in the value of the project in the previous tender.

The president of state electricity company PLN, Kuntoro Mangkusubroto, said that a government team sanctioned by presidential decree No. 133/2000 dealing with electricity had decided to cancel the winner of the project in the previous tender and re-tender the project to reduce damage to PLN and the government.

"So for Tasikmalaya project, the presidential decree 133/2000 team has decided to cancel the winner in the previous tender and re-tender the project," Kuntoro said after a ceremony marking the 55th National Electricity Day on Friday.

The presidential decree 133/2000 team comprises of the coordinating minister for economic affairs, the minister of energy and mineral resources, the foreign minister and the chairman of the National Development Planning Board.

It was Kuntoro who first revealed about the mark-up in Tasikmalaya project. He also revealed another huge mark-up in similar project in Kediri, East Java.

As for Kediri relay station project, Kuntoro said the team had not yet handed down its decision. The team was still awaiting a recommendation from PLN's board of commissioners on the next move against Kediri project.

"Because the problems are rather complicated (for Kediri), PLN's board of commissioners is asked to give a recommendation in one week time, on what is the best move to be taken against Kediri project," Kuntoro said.

At a hearing with the House of Representatives' Commission VIII, Kuntoro revealed that the value of Kediri and Tasikmalaya relay station projects were marked up by more than 200 percent. The contracts for both projects were signed in 1998 when Djiteng was president of PLN.

Tasikmalaya project would cost PLN Rp 386.9 billion, or 283 percent more expensive than similar project to be built in Depok, West Java, while Kediri project would cost Rp 342.2 billion, or 250 percent higher than Depok project.

The Tasikmalaya project would be financed by German Development Bank (KFW), and the loan agreement was signed on August 30, while Kediri project would be funded by Banque Paribas of France, and the loan agreement was signed on August 25.

In the previous tender, the Tasikmalaya project was won by a consortium of PT Ritra Safitri (reportedly owned by Bambang Yoga Sugomo)-PT Citacontrac. Meanwhile, the Kediri project was won by a consortium of PT Pembangunan Perumahan (PP) and PT Indokomas.

Kuntoro said both Tasikmalaya and Kediri relay stations were all needed urgently by PLN. PLN would soon open the re-tendering of the Tasikmayala project, and the former winner could still participate in the re-tendering. (*)