House calls for retender of Cilegon power project
Wednesday, February 25 2004 - 02:23 AM WIB
The appointment of Japanese company Mitsubishi Corporation as Cilegon’s power plant contractor is considered as a violation of Presidential Decree No. 8/1984 regarding usage of foreign export credit.
Energy Commission member Priyo Budi Santoso, a Golkar Party member, said his party will ask the commission’s leaders to seek clarification from the PLN regarding Cilegon power project.
“Besides this (clarification), we will ask for the retender of the project.” Priyo told the Koran Tempo on Tuesday in Jakarta.
The appointment of Cilegon project’s contractor, according to Priyo, shows the management of PLN is not professional. Being a state enterprise, PLN should have followed the existing procedures for tender.
“I suspect there are some interests (at stake) in project’s work,” he said without explaining further.
Last week, the National Development Planning Agency (Bappenas) has also questioned the direct appointment of Mitsubishi Corporation as the contractor Cielgon power plant.
The agency’s senior official Gumilang Hardjakoesoema said in Jakarta on Thursday that PLN’s decision to appoint the Japanese company without a tender process had violated the existing procedures.
“We have asked PLN to fulfill the existing procedure,” he was quoted as saying. He said that under the existing regulation, PLN should open an international tender in selecting the contractor of the project so that PLN would have the opportunity to get the best deal.
An international tender could be avoided only if the related project has a single supplier and financed by soft loans, he said.
The Cilegon power plant was one of large-scale projects suspended by the government during the peak of the country’s financial crisis five years ago. The previous contractor was PT Daya Listrik Prima, a subsidiary of Kiani Group, which is owned by former president Soeharto’s close friend Bob Hasan. (*)